Has Altria Stock Been Good For Investors?

Core Viewpoint - Tobacco stocks, particularly Altria, have historically provided strong returns but are currently facing challenges due to declining cigarette sales and setbacks in transitioning to next-generation products [2][3]. Performance Analysis - Over one, three, and five-year periods, Altria has underperformed the S&P 500 in terms of price appreciation but has outperformed on a total-return basis over the last year and five years [4][6]. - Altria's stock performance has been modest over the long term, with a significant impact from failed investments in Juul and Cronos Group [7]. Dividend Insights - Altria is primarily favored by investors for its high dividend yield, currently at 7.2%, and a strong history of annual dividend increases, having raised its dividend 60 times in the last 56 years [9]. - The company’s reliable cash flow supports its dividend strategy, making it attractive for dividend-focused investors [11]. Future Outlook - Despite the decline in cigarette sales, Altria aims to enhance profits through price increases on cigarettes and new product launches, including Njoy and On! [10]. - The stock is currently trading at a low price-to-earnings ratio of 11.3, indicating potential for price gains alongside its strong dividend [11].