Joe Raedle Tobacco company Altria Group (NYSE:MO) has had a poor year at the stock markets with an 11.6% decline in share price, which is in stark contrast with the near 25% increase in the S&P 500 (SP500) index. But MO still stands out for having the highest dividend yield among all S&P 500 stocks, at 9.5%. And it's no unreliable dividend either, with the company's impressive 54-year track record of consistent dividend payments. In fact, over the past decade, it has nearly doubled investor money because of ...

Fool.com contributor Parkev Tatevosian compares Verizon (VZ 0.48%) to Altria Group (MO) to determine which is the better buy for passive income investors. *Stock prices used were the afternoon prices of Dec. 26, 2023. The video was published on Dec. 28, 2023. ...

PM Images We're headed into the last week of 2023, and I am not sure anyone could have predicted where the markets would have ended up. After an unpredictable Fed, rates continuing to rise, a regional banking debacle, and an AI boom, the S&P 500 is up 24.33% YTD, while the Nasdaq has increased 43.12%. The Santa Clause rally is still intact as the S&P 500 appreciated by 0.45% this week while the Nasdaq rallied into the holiday weekend by 1.01%. I think we're going to keep the momentum going into the new ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

ugurhan With December ending soon and the markets on an uptrend, I decided to add to some of my lagging existing positions. I couldn't resist these juicy yields, as a result of stock price declines, and decided to deploy a small amount of cash this month. My preferred method has always been to dollar cost-average into stocks. I nibble here and there every month, no matter the market conditions. Sometimes my dollars buy me quite a few shares, other times the same amount buys me less. Either way, I am buildin ...

A thousand dollars might seem like loose change in the world of dividend investing. After all, a $1,000 investment in a dividend stock with a 5% yield would generate only $50 in extra cash each year -- and that gain could easily disappear if the underlying stock sheds more than 5% of its value. That's why many dividend investors shifted toward safer CDs and T-bills as interest rates rose over the past two years.However, over time investors who buy a stable dividend stock and reinvest its dividends can still ...

Mario Tama Altria (NYSE:MO) shares performed well for nearly a decade after the spin-off of Philip Morris International in March 2008. The stock appreciated, and the dividend continued to grow at a nearly double-digit rate. An attractive and growing yield has always been one of the primary reasons to buy tobacco stocks, distributions that are fueled by a business that is a little capital-intensive and generates substantial free cash flows. More and more, these dividends can be seen as compensation for s ...

Altria’s Third-Quarter and Nine-Months 2023 Earnings Conference Call October 26, 2023 ...

Altria Group, Inc. (NYSE:MO) Q3 2023 Earnings Conference Call October 26, 2023 9:00 AM ET Company Participants Mac Livingston - Vice President, Investor Relations Billy Gifford - Chief Executive Officer Sal Mancuso - Executive Vice President and Chief Financial Officer Conference Call Participants Pamela Kaufman - Morgan Stanley Bonnie Herzog - Goldman Sachs Andrei Condrea - UBS Vivien Azer - TD Cowen Owen Bennett - Jefferies Matthew Smith - Stifel Gaurav Jain - Barclays Steven Marascia - Capital Securiti ...

Financial Performance and Targets - Adjusted diluted EPS growth target of mid-single digits on a compounded annual basis through 2028[113] - Net earnings for the nine months ended September 30, 2023, increased by 97.5% to $6.07 billion compared to $3.07 billion in 2022[119] - Adjusted net earnings for the nine months ended September 30, 2023, increased by 1.7% to $6.74 billion compared to $6.63 billion in 2022[119] - Adjusted diluted EPS for the nine months ended September 30, 2023, increased by 3.3% to $3.78 compared to $3.66 in 2022[119] - Net earnings for Q3 2023 increased to $2.166 billion, up from $224 million in Q3 2022, representing a 100%+ growth[121] - Adjusted diluted EPS for Q3 2023 was $1.28, slightly down by 1.1% compared to $1.28 in Q3 2022[121] - The company narrowed its 2023 full-year adjusted diluted EPS forecast to a range of $4.91 to $4.98, representing a growth rate of 1.5% to 3% from the 2022 base of $4.84[122] - The 2023 adjusted diluted EPS guidance includes planned investments in smoke-free product R&D, digital consumer engagement, and U.S. commercialization of NJOY ACE, as well as $50 million in amortization charges related to the NJOY Transaction[122] - The 2023 full-year adjusted effective tax rate is expected to be in the range of 24.5% to 25.5%[123] - Special items in 2023 included $11 million from NPM Adjustment Items, $(9) million from acquisition-related items, and $(65) million from ABI-related special items[121] - Adjusted net earnings for the nine months ended September 30, 2023, were $6,739 million, compared to $6,629 million in 2022[134] - Adjusted diluted EPS for the nine months ended September 30, 2023, was $3.78, compared to $3.66 in 2022[134] - Reported net earnings increased by $2,996 million (97.5%) to $6,070 million, driven by favorable equity securities investments and lower debt expenses[140] - Adjusted net earnings increased by $110 million (1.7%) to $6,739 million, with adjusted diluted EPS rising 3.3% to $3.78[140] - Net revenues decreased by $269 million (4.1%), primarily due to lower revenues in the smokeable products segment[140] - Cost of sales decreased by $137 million (8.0%), and excise taxes on products decreased by $134 million (11.8%), both due to lower shipment volumes in the smokeable products segment[140] - Net revenues for the Smokeable Products segment decreased by $538 million (3.2%) for the nine months ended September 30, 2023, primarily due to lower shipment volume[167] - Adjusted OCI for the Smokeable Products segment increased by $19 million (0.2%) for the nine months ended September 30, 2023, driven by higher pricing and promotional investments[167] - Net revenues for the Smokeable Products segment decreased by $310 million (5.3%) for the three months ended September 30, 2023, primarily due to lower shipment volume[169] - Adjusted OCI for the Smokeable Products segment decreased by $71 million (2.5%) for the three months ended September 30, 2023, primarily due to lower shipment volume and higher costs[169] - Net revenues for the oral tobacco products segment increased by $45 million (2.3%) for the nine months ended September 30, 2023, driven by higher pricing and promotional investments[178] - Reported and adjusted OCI for the oral tobacco products segment increased by $52 million (4.1%) for the nine months ended September 30, 2023, due to higher pricing and lower costs[178] - Reported and adjusted OCI margins for the oral tobacco products segment increased by 0.9 percentage points to 68.9% for the nine months ended September 30, 2023[179] - Net revenues for the nine months ended September 30, 2023, were $15,606 million for the Guarantor, with gross profit of $8,622 million[199] - Net earnings (losses) for the nine months ended September 30, 2023, included a loss of $11,300 million for the Parent and earnings of $5,743 million for the Guarantor[199] Smoke-Free Products and Innovation - U.S. smoke-free volumes to grow by at least 35% from 800 million units in 2022 to 1.08 billion units by 2028[113] - U.S. smoke-free net revenues to approximately double to $5 billion by 2028 from $2.6 billion in 2022[113] - Acquisition of NJOY Holdings for approximately $2.9 billion in June 2023[114] - The 2023 adjusted diluted EPS guidance includes planned investments in smoke-free product R&D, digital consumer engagement, and U.S. commercialization of NJOY ACE, as well as $50 million in amortization charges related to the NJOY Transaction[122] - NJOY ACE reported shipment volume of approximately 7.5 million pods in Q3 2023, with distribution expanding to 42,000 stores[143] - The company expects ACE distribution to reach 70,000 stores by the end of 2023, representing approximately 70% of e-vapor volume and 55% of cigarette volume sold in the U.S. multi-outlet and convenience channel[184] - The company's NJOY e-vapor business reported domestic shipment volume of approximately 7.5 million ACE pods for the three months ended September 30, 2023, with retail share remaining stable since the NJOY Transaction[184] - The company acquired NJOY Holdings for approximately $2.75 billion (net of cash acquired) on June 1, 2023, with potential additional payments of up to $500 million contingent on FDA authorizations[190] Regulatory and Legal Environment - FDA has resolved more than 99% of timely applications received for e-vapor products, with the majority resulting in denials[147] - Helix submitted PMTAs for on! oral nicotine pouches in May 2020, but as of October 23, 2023, no marketing order decisions have been issued[147] - Middleton has received market orders or exemptions covering over 99% of its cigar product volume as of October 23, 2023[147] - FDA authorized PMTAs for three new tobacco-flavored varieties of Marlboro HeatSticks in January 2023[147] - FDA issued a final rule in March 2020 requiring 11 textual warnings with color graphics on cigarette packaging and advertising, which was later blocked by a U.S. District Court in December 2022[148] - FDA plans to propose a product standard by December 2023 to establish a maximum nicotine level in cigarettes and other combustible tobacco products[149] - FDA issued two proposed product standards in April 2022: banning menthol in cigarettes and banning all characterizing flavors in cigars, with plans to complete rulemaking by August 2023[149] - FDA proposed a product standard for NNN levels in finished smokeless tobacco products in January 2017[149] - FDA issued a proposed rule in March 2023 setting forth requirements for tobacco product manufacturers regarding good manufacturing practices[149] - Compliance with FDA regulations could result in increased costs, including manufacturing, labeling, and packaging requirements, potentially impacting the company's business operations and financial position[150] - The company faces ongoing governmental investigations related to its former investment in JUUL, including inquiries from the FTC, SEC, and state attorneys general[158] - The company has filed a lawsuit in federal court in California against manufacturers of illegal e-vapor products in October 2023 to protect its lawful e-vapor product business[160] Market Share and Consumer Behavior - Cigarette retail share for the industry discount segment was up year-over-year but unchanged from the first half of 2023[115] - Domestic cigarette industry volume declined by 8% in Q3 2023 compared to Q3 2022, influenced by macroeconomic conditions and illegal flavored disposable e-vapor products[143] - Marlboro's market share increased by 0.3 share points to 42.3% in Q3 2023 compared to Q2 2023, but decreased by 0.3 share points year-over-year[143] - The U.S. nicotine pouch category grew to 32.3% of the oral tobacco category, up 9.8 share points year-over-year, with on! achieving 6.9% market share[143] - The discount share of the cigarette category remained at 28.2% in Q3 2023, with a 1.1 share point increase year-over-year[143] - Marlboro's retail share of the total cigarette category decreased by 0.6 percentage points to 42.1% for the nine months ended September 30, 2023, primarily due to macroeconomic pressures and increased competitive activity[173][174] - Total cigarettes industry discount segment retail share increased by 1.6 percentage points to 28.2% for the nine months ended September 30, 2023, driven by macroeconomic pressures and competitive activity[174] - The smokeable products segment's reported domestic cigarettes shipment volume decreased by 10.5% for the nine months ended September 30, 2023, with premium cigarettes accounting for 94.6% of the volume[174] - The company's oral tobacco products segment's retail share decreased to 43.7% for the nine months ended September 30, 2023, down from 46.7% in the same period in 2022, primarily due to share losses in MST products[181] - The U.S. nicotine pouch category grew to 32.3% of the U.S. oral tobacco category, an increase of 9.8 share points compared to the prior year, with the company's on! brand holding a 21.4% share of the nicotine pouch category[181] Operational and Supply Chain Risks - The company faces risks from illicit trade in tobacco products, including counterfeit products and untaxed sales, which could adversely affect its business[160] - The company is mitigating risks related to tobacco supply by maintaining inventory levels, sourcing from diverse geographic regions, and entering into long-term contracts with growers[161] - The company faces risks from its inability to anticipate and respond to changes in adult tobacco consumer preferences and purchase behavior[200] - Growth of the e-vapor category and other innovative tobacco products could reduce cigarette and MST consumption levels and shipment volumes[200] - The company may face challenges in commercializing innovative tobacco products that reduce health risks and appeal to adult consumers[200] - Macroeconomic and geopolitical conditions, including inflation, could shift adult tobacco consumer disposable income and purchasing behavior[200] - The company relies on a few significant facilities and a small number of key suppliers, distributors, and distribution chain service providers[200] - Risks include potential write-downs of intangible assets, such as trademarks and goodwill, due to impairment[200] - The company faces risks related to health epidemics and pandemics, such as COVID-19, and government measures to address them[200] Debt and Financial Position - Debt-to-Consolidated EBITDA ratio target of approximately 2.0x[113] - The company had $1.5 billion in cash and cash equivalents as of September 30, 2023, with access to a $3.0 billion senior unsecured 5-year revolving credit agreement for general corporate purposes[185] - Total long-term debt decreased to $25.1 billion as of September 30, 2023, from $26.7 billion at the end of 2022, with a weighted-average coupon interest rate of approximately 4.2%[188] - The company's debt-to-Consolidated EBITDA ratio was 2.1 as of September 30, 2023, with Consolidated EBITDA of $12.131 billion for the twelve months ended September 30, 2023[189] - The company estimates payments related to State Settlement Agreements and FDA user fees to average $3.9 billion annually over the next three years, excluding potential NPM Adjustment Items[189] - The company paid approximately $3.5 billion in fees for the nine months ended September 30, 2023, related to State Settlement Agreements and FDA user fees, with $3.0 billion recorded as charges to cost of sales[190] - The fair value of the company's long-term debt is $21.3 billion as of September 30, 2023, compared to $22.9 billion as of December 31, 2022[203] - A 1% increase in market interest rates would decrease the fair value of long-term debt by $1.6 billion as of September 30, 2023, and $1.7 billion as of December 31, 2022[203] - A 1% decrease in market interest rates would increase the fair value of long-term debt by $1.9 billion as of September 30, 2023, and $2.0 billion as of December 31, 2022[203] Taxes and Settlement Agreements - The weighted-average state cigarette excise tax increased from $0.36 to $1.90 per pack between 1998 and October 2023, with New York enacting a new excise tax increase effective September 2023[151] - 33 states, the District of Columbia, Puerto Rico, and several cities and counties have enacted legislation to tax e-vapor products, with 11 states and the District of Columbia taxing oral nicotine pouches as of October 2023[153] - The State Settlement Agreements require annual payments adjusted for factors like inflation, with a 6.5% inflation calculation based on CPI-U data as of December 2022, though the impact on financial position was not material[155] - The company estimates payments related to State Settlement Agreements and FDA user fees to average $3.9 billion annually over the next three years, excluding potential NPM Adjustment Items[189] - The company paid approximately $3.5 billion in fees for the nine months ended September 30, 2023, related to State Settlement Agreements and FDA user fees, with $3.0 billion recorded as charges to cost of sales[190] Shareholder Returns and Cash Flow - Dividends paid during the first nine months of 2023 increased by 2.7% to $5,040 million compared to $4,908 million in the same period of 2022[191] - The company declared a 4.3% increase in the quarterly dividend rate to $0.98 per share in August 2023, with an annualized dividend rate of $3.92 per share[191] - Net cash provided by operating activities increased to $6,060 million for the first nine months of 2023, up from $5,637 million in the same period of 2022, primarily due to lower payments for State Settlement Agreements and income taxes[192] - Net cash used in investing activities was $1,217 million for the first nine months of 2023, compared to $215 million in the same period of 2022, primarily due to the NJOY Transaction[193] - Net cash used in financing activities decreased to $7,353 million for the first nine months of 2023, compared to $7,476 million in the same period of 2022, primarily due to lower share repurchases[195] - The company recorded a $10.8 billion loss related to the cancellation of certain interests in a non-guarantor subsidiary for the nine months ended September 30, 2023[198] Product Performance and Shipment Volumes - Total cigarette shipment volume decreased by 10.5% for the nine months ended September 30, 2023, with Marlboro experiencing a 9.5% decline[171] - Cigars shipment volume increased by 4.2% for the nine months ended September 30, 2023, led by Black & Mild's 4.3% growth[171] - Shipment volume for Copenhagen decreased by 6.5% to 333.3 million cans and packs for the nine months ended September 30, 2023, while on! shipment volume increased by 40.8% to 83.9 million cans and packs[180] - Total oral tobacco products shipment volume decreased by 2.3% to 589.8 million cans and packs for the nine months ended September 30, 2023[180] - Adjusted domestic cigarette industry volume decreased by an estimated 8% for the nine months ended September 30, 2023, when adjusted for trade inventory movements and other factors[174] - Domestic shipment volume for the oral tobacco products segment decreased by 2.3% for the nine months ended September 30, 2023, with an adjusted decrease of 2.5% when accounting for calendar differences and trade inventory movements[181] Pricing and Cost Management - PM USA increased the list price of Marlboro, L&M, and Basic by $0.16 per pack effective July 23, 2023, and increased the list price of all other cigarette brands by $0.21 per pack[175] - Marketing, administration, and research costs increased by $399 million (24.4%) primarily due to higher general corporate expenses and acquisition-related costs[139] - Provision for income taxes increased by $512 million (31.8%) primarily due to lower pre-tax earnings in 2022 associated with the non-cash impairment of the investment in ABI[139] - Marketing, administration, and research costs increased by $25 million (4.3%) due to higher amortization from the NJOY Transaction[140] - The decrease of $39 million in operations for Q3 2023 was primarily due to lower OCI (Other Comprehensive Income)[121] - The company repurchased shares under its share repurchase programs, resulting in fewer shares outstanding and a $0.01 impact on diluted EPS[121] - Net revenues decreased by $477 million (2.5%) primarily due to lower revenues in the smokeable products segment[139] - Smokeable products segment revenues decreased to $16,482 million for the nine months ended September 30, 2023, compared to $17,020 million in 2022[131] - Operating income decreased by $350 million (3.8%) due to higher general corporate expenses and higher amortization of intangible assets[139] - Excise taxes on products decreased by $350 million (10.4%) due to lower shipment volume in the smokeable products segment[139] Intangible Assets and Impairment - The fair value of the Skoal trademark exceeded its carrying value of $3.9 billion by approximately 12% ($0.5 billion) as of December 31