Core Viewpoint - Altria has demonstrated solid price appreciation over the past year, with an increase of 27% [1] Company Summary - Altria is recognized as a strong dividend-paying company, appealing to dividend investors [1]

Core Viewpoint - The tobacco industry is evolving into the nicotine industry, with Altria Group and British American Tobacco being key players, but British American Tobacco is currently better positioned for growth and market share in smokeless products [2][10][12]. Company Comparison - Altria and British American Tobacco both offer high dividend yields around 7% and have similar financial metrics, but their growth prospects differ significantly [2][5]. - Altria primarily operates in the U.S. with its Marlboro brand, while British American Tobacco has a global presence and competes mainly with Philip Morris International [4]. Financial Health - Both companies generate sufficient free cash flow to cover dividends and have significant stakes in other companies, with Altria's stake in Anheuser-Busch InBev valued at approximately $11 billion and British American Tobacco's stake in ITC Limited valued at around $16 billion [7]. Industry Adaptation - The decline in traditional cigarette use has prompted both companies to invest in smokeless nicotine products, with British American Tobacco leading in the electronic vape market with a 40% market share and 13.2% of total revenue from new product categories in 2024 [9][10]. - Altria has struggled with its investments in smokeless products, reporting only $300 million in sales from new categories in 2024, which is just 1.2% of its total revenue [11]. Market Dynamics - The U.S. government’s crackdown on illegal vape products benefits both companies, but British American Tobacco is expected to gain more due to its strong market share in vaping [14]. - Altria faces challenges in maintaining its market leadership in next-generation nicotine products, which could weaken its business as cigarette volumes decline [15].

Core Viewpoint - Altria's stock has seen a slight increase of approximately 0.6% since its last earnings report, underperforming compared to the S&P 500, raising questions about its future performance leading up to the next earnings release [1] Estimates Movement - Estimates for Altria have trended upward over the past month, indicating a positive outlook for the stock [2] VGM Scores - Altria has a Growth Score of B, a Momentum Score of D, and a Value Score of B, placing it in the top 40% for the value investment strategy. The overall aggregate VGM Score for the stock is A, which is significant for investors not focused on a single strategy [3] Outlook - The upward trend in estimates suggests a promising outlook for Altria, which currently holds a Zacks Rank of 3 (Hold). The expectation is for an in-line return from the stock in the upcoming months [4] Industry Performance - Altria is part of the Zacks Tobacco industry, where another player, Philip Morris, has experienced a gain of 4.3% over the past month. Philip Morris reported revenues of $9.3 billion for the last quarter, reflecting a year-over-year increase of 5.8% [5] Philip Morris Earnings Expectations - For the current quarter, Philip Morris is projected to report earnings of $1.84 per share, representing a year-over-year change of 15.7%. The Zacks Consensus Estimate for Philip Morris has remained unchanged over the last 30 days, and it holds a Zacks Rank of 1 (Strong Buy) [6]

Group 1 - Altria Group, Inc. (NYSE: MO) is favored by many dividend investors and is also considered attractive for total return potential in a turbulent market environment [1] - The focus is on identifying companies with exceptional quality and a proven ability to reinvest capital for impressive returns, particularly those with a market capitalization of less than $10 billion [1] - The ideal companies should demonstrate long-term capital compounding capabilities with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] Group 2 - A long-term investment perspective is maintained to generate higher returns compared to market indices, especially in a rapidly evolving investment landscape [1] - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1] - Careful consideration is given to these ventures, with proportional allocation within the portfolio to maintain overall stability [1]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Dividend Stocks Overview - Dividend yield is a key metric for investors, indicating how much a company pays in annual dividends relative to its stock price [1] - The sustainability of a company's dividend yield is often assessed through its dividend payout ratio, which shows the percentage of net income distributed as dividends [1][3] - A high dividend yield may result from a declining stock price, which could indicate underlying issues [2] Altria Group (MO) - Altria Group has a dividend yield of 6.83% and an annual dividend of $4.08, with a payout ratio of 68.34% [5][6] - The company has a strong track record of 56 consecutive years of dividend increases and an annualized 3-year dividend growth of 4.35% [5][8] - Despite the decline in traditional tobacco smoking, Altria is pivoting towards alternative nicotine products, which may support future revenue and earnings growth [7] - The stock has delivered a total return of over 609% in the last 15 years, and its current P/E ratio of 9x indicates it is undervalued compared to its historical performance [6][7] United Parcel Service (UPS) - UPS has a dividend yield of 6.88% and an annual dividend of $6.56, with a high payout ratio of 95.63% [9][10] - The company has a history of maintaining dividends even during economic downturns, with a cash flow payout ratio of 66% [10] - UPS is undergoing a turnaround plan that is expected to improve margins, and its P/E ratio is around 14x, which is a discount to historical averages [11] Verizon Communications (VZ) - Verizon has a dividend yield of 6.25% and an annual dividend of $2.71, with a payout ratio of 64.52% [12][14] - The company has a 20-year track record of dividend increases, but its recent total return over 10 years is only 45.22% [13][14] - Verizon is facing challenges with subscriber losses but has received FCC approval for a deal to acquire Frontier, which may enhance its competitive position [13][14]

Investment Rating - Industry rating is maintained as "Outperform the Market" [9] Core Insights - The new tobacco market continues to grow, with heated tobacco products leading in market size and nicotine pouches experiencing the fastest growth [2][3] - The global tobacco market is undergoing significant changes, with Japan's tobacco business expanding rapidly [4] - The global supply of tobacco leaves is facing shortages, leading to widespread price increases across the industry [14] Summary by Sections Electronic Cigarettes - In 2024, global e-cigarette sales are projected to reach $23.04 billion, a year-on-year increase of 9.5% [3] - Sales of disposable e-cigarettes grew by 18.9% to 840 million units, generating $6.42 billion in revenue, up 19.6% [3] - Open system e-cigarettes saw sales of 85.16 million devices and 12.23 million liters of e-liquid, with revenues of $2.62 billion and $5.49 billion respectively [3] Traditional Tobacco Products - Traditional oral tobacco products, including chewing and snuff tobacco, are experiencing a decline, with 2024 sales expected to drop by 0.8% to 115,000 tons [3] - Revenue from traditional oral tobacco is projected to decrease by 0.1% to $13.82 billion [3] Nicotine Pouches - Nicotine pouch sales are expected to grow by 36.9% to 21.23 billion pouches in 2024, with revenue reaching $11.25 billion, a 51.0% increase [3] - The United States leads in nicotine pouch sales with 13.88 billion pouches sold [3] Heated Tobacco Products - Sales of heated tobacco products are projected to grow by 12.7% to $38.85 billion in 2024 [3] - The volume of heated tobacco devices sold is expected to increase by 11.7% to 45.26 million units, with revenue rising by 14.7% to $2.44 billion [3] Company Performance - Philip Morris International reported a net income of $14.66 billion from its smoke-free products, a 14.2% increase, accounting for 38.7% of total revenue [5] - British American Tobacco's Vuse e-cigarette sales declined by 5.9% to 616 million units, impacted by illegal disposable e-cigarettes in the U.S. [6] - Japan Tobacco's Ploom brand heated tobacco sales grew by 24.2% to 218,000 boxes, primarily driven by the Ploom X model [7] Market Dynamics - The global tobacco market is experiencing intense competition, with multinational companies showing divergent growth patterns [4] - The supply chain for tobacco is under pressure due to climate-related shortages and rising prices [14]

Group 1 - The article introduces JB Analytics as a new contributing analyst for Seeking Alpha, encouraging individuals to share investment ideas and get published [1] - Jalwa Begum, the individual investor mentioned, has a Bachelor of Commerce and focuses on long-term value investing, particularly in sectors like technology, healthcare, consumer goods, and industrials [2] - The investment approach is influenced by classic value investors, seeking quality businesses trading below intrinsic value and emphasizing a long-term holding strategy [2] Group 2 - The article emphasizes the importance of thoughtful analysis and disciplined investment practices in navigating economic fluctuations [2] - It highlights the value of connecting with a community of like-minded investors to refine investment thinking and provide useful insights [2]

Group 1 - Half of the Barron's Better Bets (BBB) collection is considered too expensive or has low dividends, but nine of the twelve highest yield "Dogs" with the safest dividends are recommended for purchase [1] - Altria is highlighted as a potential buy within the BBB collection [1] Group 2 - A live video series on Facebook, hosted by Fredrik Arnold, features daily portfolio candidates and encourages audience interaction regarding stock preferences [2]

Company Overview - Altria Group is adapting to changing industry dynamics, focusing on expanding beyond traditional cigarettes into the smokeless category due to rising health consciousness and government regulations [11] - Revenues from the oral product category are steadily increasing, driven by the growing popularity of reduced-risk products [11] Investment Ratings - Altria has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12] - The company is considered a potential top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 4.5% for the current fiscal year [12] Earnings Estimates - Four analysts have revised their earnings estimates higher in the last 60 days for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.03 to $5.35 per share [12] - Altria has an average earnings surprise of 1.3%, suggesting a positive outlook for its earnings performance [12] Conclusion - With a solid Zacks Rank and strong Growth and VGM Style Scores, Altria is recommended for investors' consideration [13]