Core Viewpoint - The resurgence of tobacco stocks, particularly Altria Group, has been notable in 2025, with shares up nearly 17% and approaching $60, a level not seen since 2017, as investors seek safe-haven stocks during uncertain times [1]. Company Overview - Altria Group, owner of the Marlboro brand, primarily operates in the U.S. market and has faced significant declines in cigarette usage, which is expected to continue, particularly among young adults [3][8]. - The company has invested in diversifying its product offerings, including cannabis, nicotine pouches, cigars, electronic vaping, and alcohol, but has experienced muted success and notable failures, such as the $12.8 billion investment in Juul, which was written down to zero [4][12]. Financial Performance - The majority of Altria's revenue, approximately 88%, still comes from smokables, with new initiatives in vaping and nicotine pouches contributing minimally to overall revenue [5]. - Cigarette volumes for Marlboro declined by 13.3% year-over-year, a significant acceleration compared to historical declines of under 5% annually, indicating a major shift in the industry [8][10]. Dividend and Profitability Risks - Altria's ability to maintain profits has relied on increasing cigarette prices and reducing overhead costs, but this strategy is not sustainable long-term as the majority of its $11.6 billion in annual operating earnings is derived from cigarettes [9][10]. - The company faces risks to its dividend growth, which could be halted or slashed if profits decline without being replaced by new nicotine consumption [9][10]. Debt and Financial Strategy - Altria has accumulated $26 billion in debt, primarily to fund stock repurchases, which has not yet led to a dividend cut but poses risks for the future as the cigarette business deteriorates [14]. - The company has reduced its shares outstanding by about 10% over the last five years, which can benefit dividend per share but is being achieved through increased leverage [13][14]. Investment Outlook - The combination of a highly leveraged balance sheet, significant volume declines, and lack of successful diversification presents a challenging outlook for Altria Group, suggesting that investors should be cautious about purchasing the stock even with its attractive dividend yield [15][16].

Core Viewpoint - High-yield dividend stocks are highlighted as a reliable source of income for investors, particularly in retirement, with a focus on companies that have a proven track record of consistent dividend payments [1][2]. Group 1: Company Summaries - **Realty Income**: Current yield is 5.6%, known for being one of the largest REITs globally, paying monthly dividends, and has raised dividends for 110 consecutive quarters, with a payout ratio of 75% of anticipated 2025 funds from operations [4][5]. - **Altria Group**: Current yield is 6.7%, recognized as a Dividend King with over 50 years of uninterrupted dividend increases, despite declining cigarette volumes, maintains a payout ratio around 80% of cash flow, and has a significant stake in Anheuser-Busch InBev [6][7][8]. - **British American Tobacco**: Current yield is 6.8%, operates globally with a focus on next-generation nicotine products, has a dividend payout ratio of 66% of cash flow, and has transitioned to a quarterly payment schedule [9][10]. - **Verizon Communications**: Current yield is 6.1%, a leader in the U.S. wireless market with 21 consecutive annual dividend increases, and a payout ratio of only 58% of 2025 earnings estimates [11][12]. - **Enbridge**: Current yield is 5.7%, operates extensive pipelines and utilities, has a strong dividend track record with 28 consecutive annual increases, and maintains a payout ratio of 60% to 70% of distributable cash flow [13][14].