The market has just presented me and you with a "buy the dip" opportunity we've all been waiting for regarding Altria Group ( MO ). One of the most popular dividend businesses out there is oneWelcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-solid pillar in my financial foundation through dividend investing. I believe it’s one of the most accessible paths to achieving finan ...

Core Viewpoint - The current market presents a "buy the dip" opportunity for Altria Group (MO), a well-known dividend business, indicating potential for investment growth in the company. Group 1: Company Overview - Altria Group is recognized as one of the most popular dividend businesses, appealing to investors seeking steady income through dividends [1]. - The company is part of a broader investment strategy that emphasizes the importance of dividend investing as a pathway to financial freedom [1]. Group 2: Investment Strategy - The article highlights the significance of dividend investing, suggesting it is an accessible method for individuals to build long-term wealth [1]. - The author emphasizes the role of financial modeling, due diligence, and negotiation in evaluating companies, which is crucial for understanding Altria's market position [1].

Core Viewpoint - Investors are increasingly seeking high-yield and reliable dividend stocks, with Altria Group and Verizon Communications highlighted as strong options for income generation in challenging markets [1] Group 1: Altria Group (MO) - Altria offers a dividend yield of 6.8%, significantly higher than the consumer staples average of 1.8%, and has returned over $1.7 billion in Q3 and $5.2 billion in the first nine months of 2025 to shareholders through dividends [2][3] - The company's adjusted diluted EPS rose 3.6% year-over-year to $1.45 in Q3, driven by a disciplined pricing strategy and growth in its smoke-free products segment [3] - Altria has a 60-year track record of annual dividend increases, earning it the title of "Dividend King," and announced a 3.9% dividend increase in August [4] - On Wall Street, Altria stock is rated as a "Hold" by most analysts, with a potential upside of 27% over the next 12 months based on its high price target of $72 [5] Group 2: Verizon Communications (VZ) - Verizon also boasts a dividend yield of 6.8% and has maintained uninterrupted dividend payouts for decades, raising its dividend for 19 consecutive years [6] - The company's forward payout ratio of approximately 57.3% indicates a balanced approach to returning cash to investors while allowing for reinvestment in operations and debt management [6]

Group 1 - Altria Group Inc. shares experienced a significant decline of 14.25% over the past month [1] - The company had a slight decrease of 1.47% in the month prior to the recent drop [1]

Core Insights - Altria Group, Inc.'s oral tobacco segment showed strong margin performance in Q3 2025, driven by Helix's effective execution and the launch of the on! PLUS nicotine pouch [1][8] - Despite a 9.6% decline in total oral tobacco domestic shipment volumes, the segment's adjusted operating companies income (OCI) margin increased by 2.4 percentage points to 69.2% [2] - The launch of on! PLUS comes amid intense price competition, with average nicotine-pouch prices down 7% nationally, yet Altria managed to increase retail prices by approximately 1.5% in Q3 [3] Product Launch and Market Position - The on! PLUS product emphasizes consumer comfort, nicotine delivery, and flavor satisfaction, outperforming rival brands in early tests [4] - The FDA's inclusion of on! PLUS in its pilot program for pouch reviews may provide Altria with regulatory advantages [4] - Management remains cautious about expansion timing but is optimistic about the product's differentiation and market potential [4] Competitive Landscape - Philip Morris International Inc. continues to lead the global oral nicotine market with its ZYN brand, achieving a 17.7% growth in smoke-free net revenues in Q3 2025 [5] - Turning Point Brands, Inc. reported nearly eightfold year-over-year growth in modern oral revenues, reaching $30.1 million in Q2 2025, and raised its full-year guidance to $100-$110 million [6] Financial Performance and Valuation - Altria's shares have decreased by 13.5% in the past month, compared to a 7.1% decline in the industry [7] - The company's forward price-to-earnings ratio is 10.3X, lower than the industry's average of 13.79X [9] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 6.1% for 2025 and 2.6% for 2026 [10]

Group 1: Hong Kong Stock Market Updates - China Metallurgical Group (01618) saw a decline of over 5%, reporting a revenue of 335.09 billion yuan for the first three quarters, a year-on-year decrease of 18.79%, and a net profit of 3.97 billion yuan, down 41.88% [1] - Fosen Pharmaceutical (01652) surged nearly 74% after announcing that its subsidiary received approval for the "Enzalutamide Soft Capsule" from the National Medical Products Administration of China [1] - Sanhua Intelligent Control (02050) increased over 3%, with a revenue of 24.03 billion yuan for the first three quarters, a year-on-year growth of 16.86%, and a net profit of 3.24 billion yuan, up 40.85% [1] - Rongchang Biopharmaceutical (09995) rose over 5%, reporting a revenue of approximately 1.72 billion yuan, a year-on-year increase of 42.27%, and a net loss of about 551 million yuan, narrowing by 48.6% [1] - New Special Energy (01799) fell nearly 8%, with a revenue of 11.66 billion yuan and a net loss of 526 million yuan for the first three quarters [1] Group 2: Additional Hong Kong Stock Market Updates - Chuny Medical (01858) increased over 10%, reporting a revenue of 756 million yuan, a year-on-year growth of 48.75%, and a net profit of 192 million yuan, up 213.21% [2] - Innovent Biologics (01801) rose over 4%, achieving total product revenue exceeding 3.3 billion yuan in Q3, maintaining a strong year-on-year growth of about 40% [2] - Longpan Technology (02465) increased over 6%, with a revenue of approximately 5.83 billion yuan, a year-on-year growth of 2.91%, and a net loss of about 110 million yuan, narrowing by 63.53% [2] - 3SBio (01530) saw an early morning increase of nearly 7%, following a significant deal with Pfizer worth up to $12.5 billion [2] - China CNR Corporation (01766) fell over 8%, reporting a revenue of approximately 183.87 billion yuan, a year-on-year increase of 20.49%, and a net profit of about 9.96 billion yuan, up 37.53% [2] Group 3: US Stock Market Updates - Carvana (CVNA.US) dropped over 13%, reporting a Q3 revenue growth of 54.5% to $5.65 billion, exceeding analyst expectations [3] - Alphabet (GOOGL.US) rose nearly 2%, with Q3 revenue surpassing $100 billion, driven by strong AI demand boosting cloud business [3] - Meta Platforms (META.US) fell over 11%, reporting Q3 revenue of $51.2 billion, a 26% year-on-year increase, but net profit significantly below expectations due to a one-time tax expense [4] - Bitcoin-related stocks experienced declines, with Strategy (MSTR.US) down nearly 7% and Coinbase (COIN.US) down over 5% [4] - eBay (EBAY.US) plummeted 15%, marking its largest drop in over 20 years despite exceeding sales expectations [4] Group 4: Additional US Stock Market Updates - Comcast (CMCSA.US) fell 4%, losing 104,000 broadband users in Q3, marking the tenth consecutive quarter of user decline [5] - CoreWeave (CRWV.US) dropped over 6% after shareholders rejected a proposed acquisition [5] - Roblox (RBLX.US) fell over 15%, reporting Q3 revenue of $1.4 billion, a 48% year-on-year increase, but widening net losses [5] - Moderna (MRNA.US) rose over 13%, reportedly in talks for a large-scale acquisition with a major pharmaceutical company [6] - Altria (MO.US) fell over 7%, reporting adjusted EPS of $1.45, in line with market consensus, but net revenue declined by 1.7% [6]

Group 1 - The article emphasizes the advantages of a dividend-focused value investment strategy, highlighting capital preservation and steady income growth as key benefits [1] - The author discusses a diversified dividend stock portfolio that prioritizes high-quality value stocks, which are expected to provide meaningful growth and long-term safety [1] Group 2 - The author has disclosed a long position in the shares of specific companies, indicating a personal investment interest that may influence the analysis presented [2] - The article is intended for informational purposes only and does not constitute investment or tax advice, reflecting the author's personal opinions and experiences [3]

Core Insights - Altria Group, Inc. experienced a decline in share price due to a decrease in smokeable and oral tobacco sales, impacting year-over-year revenue growth [1][2] Financial Performance - The company reported third-quarter adjusted earnings per share of $1.45, reflecting a 3.6% increase year over year, aligning with analyst expectations [2] - Quarterly sales totaled $6.072 billion, down 3% year over year, but exceeded the analyst consensus of $5.309 billion [2] - Net revenues from smokeable and oral tobacco products decreased, with revenues net of excise taxes falling 1.7% to $5.3 billion [2][3] Segment Performance - Oral tobacco product revenues declined by 4.6% due to lower shipment volumes [3] - Smokeable product revenues decreased by 2.8%, attributed to softer volumes and increased promotional investments [3] Operational Highlights - Gross profit increased by 0.1% year over year to $3.812 billion, while operating income rose by 2.5% to $3.230 billion [4] - The company ended the quarter with cash and equivalents amounting to $3.472 billion [4] Shareholder Returns - The board expanded the share repurchase program to $2 billion, effective through December 31, 2026, contingent on market conditions [5] - The company aims for mid-single digits dividend per share growth annually through 2028 [5] Future Outlook - Altria raised its fiscal 2025 adjusted EPS outlook to a range of $5.37 to $5.45, slightly above the previous estimate [6] - The company anticipates moderated EPS growth in the fourth quarter due to the completion of the accelerated share repurchase program and the expiration of the Master Settlement Agreement legal fund [6] Market Reaction - Altria Group shares fell by 6.74% to $57.79 at the time of publication [7]

Core Insights - Altria Group Inc. reported third-quarter 2025 results with a revenue miss but an earnings beat, showcasing resilience in its core tobacco business and progress in smoke-free products [1][10] Financial Performance - Adjusted earnings per share (EPS) for the third quarter were $1.45, a 3.6% increase year over year, surpassing the Zacks Consensus Estimate of $1.44 [2] - Net revenues totaled $6,072 million, reflecting a 3% decline year over year, primarily due to decreased revenues in smokeable and oral tobacco products [3] - Revenues net of excise taxes decreased by 1.7% to $5,251 million, missing the consensus estimate of $5,321 million [3] Segment Performance - **Smokeable Products**: Net revenues fell 2.8% year over year to $5,387 million, driven by reduced shipment volume and increased promotional investments, partially offset by higher pricing [4] - Domestic cigarette shipment volumes dropped 8.2%, influenced by industry decline and retail share losses, although cigar shipment volumes increased by 2% [5] - Adjusted operating companies' income (OCI) in this segment rose 0.7% to $2,956 million, with adjusted OCI margins growing 1.3 percentage points to 64.4% [6] - **Oral Tobacco Products**: Net revenues decreased 4.6% to $689 million, attributed to reduced shipment volume and a change in shipment mix, despite increased pricing [7] - Domestic shipment volumes fell 9.6%, with adjusted OCI decreasing 0.9%, although adjusted OCI margins improved by 2.4 percentage points to 69.2% [8] Shareholder Returns and Guidance - The company ended the quarter with cash and cash equivalents of $3,472 million and long-term debt of $24,132 million [9] - Altria repurchased 1.9 million shares for $112 million in Q3 2025, raising its buyback plan to $2 billion and narrowing 2025 EPS growth guidance to 3.5-5% [10][11] - The adjusted EPS for 2025 is now expected to be in the range of $5.37 to $5.45, indicating a year-over-year growth of 3.5% to 5% [12] Strategic Outlook - The company is factoring in the impact of increased tariffs and minimal disruption from enforcement actions targeting the illicit e-vapor market into its 2025 guidance [13] - Altria continues to assess economic factors such as inflation, purchasing patterns, and regulatory developments while investing in smoke-free product research and development [14] - The expected adjusted effective tax rate for 2025 is 23-24%, with capital expenditures projected between $175-$225 million [15]

Core Viewpoint - Altria (MO.US) experienced a decline of over 7% on Thursday, retreating 14% from its historical high in August, currently trading at $57.07. The company's Q3 adjusted EPS was $1.45, a 4% increase from $1.40 last year, aligning with market consensus. However, net revenue fell by 1.7% to $5.25 billion, missing market expectations by $50 million due to high prices not fully offsetting a decline in sales volume, with combustible product sales down 8.0% and oral tobacco product sales down 9.6% [1]. Financial Performance - Q3 adjusted EPS was $1.45, up from $1.40 year-over-year, indicating a 4% growth [1]. - Net revenue decreased by 1.7% to $5.25 billion, falling short of market expectations by $50 million [1]. - Sales volume for combustible products declined by 8.0%, while oral tobacco product sales fell by 9.6% [1]. Guidance and Future Outlook - The company raised its full-year adjusted EPS guidance from $5.35-$5.45 to $5.37-$5.45, suggesting a Q4 adjusted EPS of $1.25-$1.33, compared to the current market consensus of $1.33 [1]. - Management indicated that due to an accelerated stock buyback plan in 2024 and the diminishing benefits from the "Master Settlement Agreement" legal fund expiration, Q4 growth is expected to slow down [1].