1 Stock I'd Buy Before Altria (MO) In 2026

Core Viewpoint - Coca-Cola is positioned to be a more compelling long-term investment compared to Altria, the leading tobacco company, due to its diversified product portfolio and growth potential in a changing market landscape [5]. Group 1: Altria Overview - Altria is a leading tobacco company in America, known for its flagship Marlboro brand, which holds nearly half of the retail cigarette market [2]. - The company is expanding its portfolio with smoke-free products like e-cigarettes and nicotine pouches as adult smoking rates decline [2]. - Altria has consistently increased its dividend since spinning off its international business in 2008, currently offering a forward yield of 7.2% and trading at ten times forward earnings [3]. Group 2: Coca-Cola Overview - Coca-Cola has developed a diverse range of products beyond its traditional sugary sodas, including bottled water, fruit juices, teas, and alcoholic beverages, which has helped mitigate the decline in soda consumption [8]. - The company reported organic sales growth of 16% in 2022, 12% in 2023, and is projected to maintain 12% growth in 2024, contrasting with Altria's declining sales [9]. - Coca-Cola operates a capital-light business model, producing only concentrates and syrups, which allows for high gross margins and more cash for marketing and dividends [10]. Group 3: Financial Performance and Outlook - Analysts expect Coca-Cola's adjusted EPS to grow at a CAGR of 6% from 2024 to 2027, while Altria's adjusted EPS is expected to grow at a CAGR of 4% [12]. - Coca-Cola has a forward dividend yield of 2.9% and has raised its payout for 63 consecutive years, making it a "Dividend King" [13]. - Over the past decade, Coca-Cola has delivered a total return of 126%, while Altria's total return was 99%, indicating Coca-Cola's stronger long-term performance [14]. Group 4: Market Trends and Future Prospects - The S&P 500 is near its all-time high, and the Federal Reserve is expected to cut benchmark rates in 2026, which may lead investors to favor dividend stocks like Coca-Cola over growth stocks [16]. - Coca-Cola is anticipated to benefit from this trend, positioning it as a better investment option compared to Altria for 2026 and beyond [16].