Is Altria a Buy, Sell, or Hold in 2025?

Group 1 - Altria's stock is currently viewed with caution due to geopolitical market uncertainty, despite its attractive 7.2% dividend yield [1] - The company's primary product, cigarettes, is addictive, leading to consistent consumer demand even during economic downturns, which may appeal to income-focused investors in 2025 [2][3] - Altria has demonstrated strong pricing power, consistently increasing product prices to support dividend growth, which has been raised annually since 2009 [4] Group 2 - The dividend payout ratio was approximately 60% in 2024, indicating that while it is somewhat high, it is manageable for a consumer staples company, suggesting near-term dividend safety [5] - Despite the current resilience, Altria faces long-term challenges as cigarette volumes have been declining, with a significant drop of 10.2% in 2024 [6] - Investors should monitor Altria closely, as it is not a company that can be held indefinitely without scrutiny, even if it maintains dividend payments in the short term [7] Group 3 - The ongoing decline in cigarette volumes raises concerns about the sustainability of Altria's business model, as price increases may eventually exacerbate the issue [8] - Altria is actively seeking to diversify its product offerings to counteract cigarette volume declines, but past efforts in vaping and marijuana have faced challenges, including a patent lawsuit with Juul [10] - For investors seeking high-yield opportunities, there are alternative companies with stronger business fundamentals compared to Altria, despite its current yield [11] Group 4 - Altria may be a suitable choice for investors looking for high yield and resilience in the current geopolitical climate, but long-term trends are concerning [12]