Core Viewpoint - Altria Group's collaboration with South Korean tobacco giant KT&G could enhance its smoke-free product offerings and secure its high dividend yield for the future [3][6][9] Financial Performance - Altria is a Dividend King with over 50 consecutive years of dividend growth and currently has a forward yield of 6.45% [1] - In Q2 2025, Altria's net revenue fell by 3.6% year-over-year, and GAAP earnings per share decreased by 36.2% [4] - Despite a recent increase in sales of its On! tobacco pouch product, volumes remain significantly lower than market leader Zyn, with On! reporting 52.1 million cans shipped compared to Zyn's 190.2 million cans [5] Strategic Developments - Altria announced a memorandum of understanding for a non-binding global collaboration with KT&G, focusing on the development of non-tobacco nicotine pouches and acquiring an equity stake in Another Snus Factory Stockholm AB [6][7] - The partnership may allow Altria to expand the On! brand globally and explore international growth opportunities for the Loop brand [8] Market Position and Valuation - Altria's potential for growth in non-U.S. markets and modest market share gains in the U.S. nicotine pouch market could stabilize net sales and support modest earnings and dividend growth [9] - Currently, Altria's shares trade at 11.7 times forward earnings, while Philip Morris International trades at nearly 20 times forward earnings, indicating a potential for valuation catch-up [9][10]

Core Viewpoint - Altria Group, Inc. (NYSE:MO) is identified as a strong investment opportunity with a Buy rating and a price target of $72 from Bank of America Securities [1] Group 1: Growth Opportunities - The partnership with KT&G Corp is highlighted as a significant step for Altria in expanding its presence in the oral nicotine market [2] - Acquiring a substantial stake in Another Snus Factory enhances Altria's position in the smoke-free product segment [2] - The LOOP brand is recognized as a growth opportunity due to its diverse flavor offerings and varying nicotine levels [2] Group 2: Financial and Regulatory Outlook - Altria's financial strategies focus on optimizing and innovating its programs, which is viewed positively [3] - The company is working on improving its pricing power, which is crucial for its profitability [3] - The current regulatory environment is seen as favorable, supporting Altria's long-term growth prospects [3] Group 3: Company Profile - Altria Group, Inc. is a leading American tobacco company that offers a variety of tobacco products aimed at adult consumers aged 21 and older [3]

Core Viewpoint - The article discusses the current stock market outlook and highlights 11 best and cheap stocks to buy, emphasizing the importance of earnings and interest rates in driving stock prices [2][4][8]. Market Outlook - Jeremy Siegel, a Wharton professor, believes the upward trend in the stock market will continue despite concerns about a government shutdown, as long as it does not last longer than two weeks [2]. - Siegel anticipates that the impact of tariffs will be more evident in the fourth quarter, particularly during the holiday retail season, and expects the Federal Reserve to cut interest rates by 0.25% in October and December [3][4]. Company Insights - **Sanofi (NASDAQ:SNY)**: - Forward P/E Ratio: 9.91, with 24 hedge fund holders [9]. - Recently announced a $625 million investment in Sanofi Ventures, increasing total assets to over $1.4 billion, focusing on biotech and digital health startups [10][11]. - Sanofi is a global healthcare company involved in researching, developing, and marketing medicines and vaccines [12]. - **Altria Group, Inc. (NYSE:MO)**: - Forward P/E Ratio: 12.07, with 54 hedge fund holders [13]. - Received a Buy rating from Bank of America Securities with a price target of $72, highlighting its partnership with KT&G Corp to enhance growth in the oral nicotine market [14][15]. - Altria is a leading American tobacco company providing a range of tobacco products for adult consumers [15].

Core Insights - Altria Group Inc. (NYSE: MO) shares experienced a decline of 1.47% over the past month following a previous gain of 7.36% in the month prior [1] Summary by Category - **Stock Performance** - The stock lost 1.47% in the last month [1] - Prior to this decline, the stock had gained 7.36% [1]

Core Insights - High-yield dividend stocks can provide significant income but come with risks related to sustainability of payouts [1][2] - Current focus on three high-yield stocks: Pfizer, Verizon, and Altria, which yield over 6% [3] Pfizer - Pfizer offers a dividend yield of 7.2%, with a recent quarterly dividend of $0.43 per share, marking 347 consecutive quarters of dividends [4] - Concerns exist regarding the sustainability of its dividend due to declining revenue from COVID-19 vaccine sales, with a stock price decline of 30% over the past five years [5] - Despite challenges, Pfizer's free cash flow of $12.4 billion exceeds its $9.6 billion in dividend payouts, indicating potential for maintaining its dividend [5][6] Verizon - Verizon has a dividend yield of 6.3% and announced a dividend increase for the 19th consecutive year [7] - The company's payout ratio is 63%, with projected free cash flow between $19.5 billion and $20.5 billion, significantly above its $11.4 billion in annual dividend payments [8] - Verizon's stock has risen by 8% this year, trading at a price-to-earnings multiple of 10, making it an attractive investment for stable income [9] Altria - Altria has a dividend yield of 6.5% and a payout ratio of 79%, suggesting sustainability of its dividend [10] - The company's free cash flow over the past four quarters is $8.7 billion, higher than its annual dividend payments of $6.9 billion [10] - Concerns about Altria's long-term viability exist due to declining tobacco use, with 88% of its revenue still coming from smokeable products, raising doubts about future dividend sustainability [11][12]

Group 1 - Altria is recognized as a top stock for investors seeking high yield while protecting capital, particularly due to its focus on the U.S. market since its 2008 spinoff from Philip Morris International [1] - The company is transitioning from traditional cigarettes to smoke-free products, including vapes and nicotine pouches, indicating a strategic pivot in its product offerings [1] - Altria's stock has shown improved price performance, earning upgrades in its Relative Strength Rating, reflecting positive market sentiment [3] Group 2 - Altria's stock offers a dividend yield of 7.1%, positioning it as a competitive option among high-yield stocks [3] - The company has successfully mitigated tariff risks associated with its products, enhancing its market stability [3] - Altria has joined an elite group of stocks with Relative Strength Ratings over 90, showcasing its strong market performance [3]

Core Viewpoint - Altria Group's stock has increased by 25% this year, currently trading near all-time highs, while maintaining a high dividend yield of 6.27% [1][2][11] Dividend Yield and Growth - Altria Group has a strong history of dividend growth, with 60 increases in the last 56 years, making it one of the top dividend stocks historically [4] - The dividend yield has decreased from nearly 8% earlier this year to 6.27%, but it remains significantly higher than the S&P 500 average of just over 1% [4] - Over the past decade, Altria's dividend growth has been approximately 87%, contributing to long-term gains for shareholders [5][10] Sustainable Cash Flows - Despite a decline in cigarette usage in the U.S., Altria has managed to grow earnings through consistent price increases, with operating earnings up 4.4% year over year last quarter [6] - Altria is diversifying its product offerings into electronic vaping and nicotine pouches, which are expected to drive long-term growth and counteract declines in cigarette volumes [7] - The company's dividend per share payout over the last 12 months is $4.24, while free cash flow per share is around $5.15, indicating a sustainable capacity for dividend increases [8] Future Outlook - With ongoing price increases, diversification efforts, and a favorable gap between free cash flow and dividend payouts, Altria is positioned to continue its dividend growth over the next decade [10] - A starting dividend yield of 6.27% could potentially yield over 10% on cost basis for shareholders in 10 years, providing consistent income [10]

Core Insights - Altria Group, Inc. (NYSE:MO) is collaborating with KT&G Corporation to develop novel oral nicotine products, non-nicotine products, and enhance conventional tobacco operations [1][2][3] Group 1: Collaboration Details - The agreement aims to expand nicotine pouch products globally, potentially extending Altria's on! and on! PLUS brands into select countries [2] - An Altria subsidiary and Korea Ginseng Corporation will explore opportunities in the US energy and wellness markets within the non-nicotine segment [2] - Both companies are focused on improving operations and competitiveness in traditional tobacco products, aligning with Altria's growth targets for international smoke-free goods and non-nicotine categories [3] Group 2: Company Overview - Altria Group, Inc. is a major American company involved in the production and marketing of tobacco, cigarettes, and related products globally [4] - The company has also entered the next-generation nicotine market, including oral nicotine pouches and electronic vaping devices [4]

Core Insights - Altria Group, Inc. is recognized as one of the top 10 highest dividend-paying stocks in the S&P 500, appealing to dividend investors [1] - The company is a leading producer and marketer of tobacco products, including cigarettes and medical products related to tobacco use, but faces uncertainty in its long-term prospects [2] - The tobacco industry is transitioning from traditional combustible cigarettes to smoke-free products, which will significantly impact Altria's future value as growth in traditional tobacco slows [3] Financial Performance - In Q2 2025, approximately 83% of Altria's operating income was derived from traditional smokeable products, while only 17% came from oral tobacco and nicotine offerings, indicating that smoke-free products are not yet a major revenue driver [4] - Altria has a strong dividend history, having raised its dividends 60 times over the past 56 consecutive years, currently offering a quarterly dividend of $1.06 per share with a dividend yield of 6.45% as of September 27 [5]

Core Viewpoint - The article discusses the potential of Altria Group as a stable investment option, particularly for conservative investors looking to balance their portfolios against the volatility of hypergrowth AI stocks. Group 1: Company Overview - Altria Group is a tobacco and nicotine giant with a diverse product portfolio, including Marlboro cigarettes, oral tobacco products, cigars, and electronic nicotine vapes [3] - The company has a significant investment in Anheuser Busch, further diversifying its revenue streams [3] Group 2: Financial Performance - Altria has optimized profits despite a long-term decline in cigarette usage in the U.S. through price increases, cost cuts, and financialization, resulting in a 59% growth in consolidated free cash flow over the last decade, reaching $8.7 billion in the past 12 months [4] - The stock currently offers a dividend yield of 6.27%, with dividends per share having increased by 87.6% over the past 10 years [6] - The company generates free cash flow per share of $5.15, which exceeds its annual dividend per share of $4.24, indicating a sustainable dividend growth potential [7] Group 3: Future Growth and Strategy - Altria is investing in new nicotine categories, including a partnership with KT&G Corporation to explore new nicotine pouch brands and energy investments [5] - The On! nicotine pouch brand reported a 26.5% volume growth last quarter, showcasing the company's focus on expanding beyond traditional tobacco products [5] Group 4: Market Resilience - Tobacco businesses like Altria tend to remain stable during economic downturns, with tobacco and nicotine usage often improving in tough economic conditions [9] - Altria is positioned as a counterbalance to high-volatility AI stocks, providing a steady cash return and potential resilience during market crashes [10]