Headquartered in Richmond, Virginia, Altria Group, Inc. (MO) is a major consumer goods company that focuses on tobacco products. Its portfolio includes Marlboro, which ranks among the world’s best-selling cigarette brands. The company’s offerings also extend to smokeless tobacco, wines, and alternative nicotine ventures. Altria’s market capitalization is about $97.7 billion, which places it firmly in the “large-cap” bracket – companies that are valued at $10 billion or more. The company’s size and reach h ...

Core Viewpoint - Altria Group's stock has recently declined due to disappointing earnings, but it remains a potential buy for long-term investors focused on dividend growth [2][3]. Stock Performance - As of November 17, 2025, Altria's stock (MO) was trading at approximately $58, down from around $67 in early October, primarily due to a 1.7% revenue drop in Q3 and lower Marlboro shipments [3][4]. - The stock has shown some recovery from a recent low of $56, with current prices consolidating around $58, attracting interest from income investors [4]. Dividend History - Altria has increased its dividend for 56 consecutive years, making it part of the elite Dividend Kings list, which includes companies that have raised dividends for 50 years or more [5]. - The company currently offers a forward dividend yield of 7.3%, appealing to younger income investors with longer investment horizons [6]. Valuation Metrics - Altria's price-to-earnings ratio stands at 12.6, indicating that the stock is relatively cheap compared to its earnings [7]. - Despite a decline in annual revenue from $26 billion in 2020 to $24 billion in 2024, the company's bottom line has increased by 144%, from $4.5 billion to $11 billion during the same period [9]. Dividend Payout Ratio - The company's dividend payout ratio is around 76%, which is considered high and may limit reinvestment opportunities in the business [10]. Analyst Consensus - A consensus among 15 analysts rates Altria's stock as a "hold," with a high target price of $72, suggesting a potential upside of 24% over the next 12 months [11]. - Overall, Altria presents a high yield, low valuation, and a strong track record of delivering shareholder value, making it a potential entry point for long-term dividend growth investors [11].

Core Insights - Altria Group, Inc. is recognized as one of the 15 Extreme Dividend Stocks to Buy according to hedge funds [1] - UBS has lowered its price target for Altria from $68 to $61 while maintaining a Neutral rating, citing stronger-than-expected cigarette volumes in Q3 [2] - The company is expected to achieve mid-single-digit earnings growth over the next three years, supported by duty drawbacks and disciplined pricing strategies [3] Financial Performance - In Q3 2025, Altria's smokeable products segment experienced an 8.2% decline in domestic cigarette shipment volumes, resulting in revenue of $16.2 billion [4] - The decline in shipment volumes is attributed to ongoing industry challenges and market share losses, although trade inventory movements provided some offset [4] Market Strategy - Altria continues to heavily rely on the US market, where cigarette consumption has been declining [5] - To adapt to market changes, Altria is expanding its presence in next-generation products through its Njoy brand, which includes single-use vapes and pod systems, showing solid growth despite being a smaller segment of the business [5]

Core Viewpoint - Altria Group's forward dividend yield has reached 7.5% following a stock pullback, raising questions about the sustainability of its dividend amidst challenging trends in its business [1] Financial Performance - In Q3, Altria's revenue net of excise taxes decreased by 1.7% year over year to $5.25 billion, while adjusted EPS rose by 3.6% to $1.45, falling short of analyst expectations for revenue of $5.32 billion [3] - Revenue net of excise taxes for the smokeable segment fell by 1.3% to $4.6 billion, with adjusted operating income increasing slightly by 0.7% to $2.96 billion [6] Shipment Trends - Overall shipment volumes for Altria dropped by 8.2%, with Marlboro brand shipments declining by 11.7% and other premium brands down by 9.7%. In contrast, discount brand shipments surged by 74.5% [4] - For the oral tobacco product segment, revenue net of excise taxes fell by 4.3% to $665 million, with shipment volumes decreasing by 9.6% to 178.2 million units [7] Market Dynamics - Economic pressures, including inflation, are causing adult smokers to shift from premium to discount brands, although Altria has gained market share in the discount segment [5] - Altria's Njoy e-vapor business is embroiled in a patent dispute with Juul, while facing competition from illicit flavored disposable e-vapor products, which constitute an estimated 60% of the market [6] Dividend and Valuation - Despite the challenges in its core cigarette business, Altria's dividend remains well covered, and its balance sheet is in good condition, making the stock appear more reasonably valued than earlier in the year [8]

Core Viewpoint - Low-volatility stocks may struggle to outperform the market over time, particularly during bull markets, highlighting the importance of careful investment selection [1] Group 1: Hamilton Insurance Group (HG) - Hamilton Insurance Group operates global specialty insurance and reinsurance platforms across four countries, with a rolling one-year beta of 0.31 [2] - The stock is currently trading at $25.68 per share, representing 0.9 times forward price-to-book ratio [4] - Concerns about HG include its performance in the market and potential underperformance compared to other investments [3] Group 2: Altria (MO) - Altria is best known for its Marlboro brand and offers a range of tobacco and nicotine products, with a rolling one-year beta of 0.03 [5] - The stock is priced at $57.20 per share, trading at 10.3 times forward price-to-earnings ratio [7] - Altria may present a strong investment opportunity due to its established market presence and product offerings [6] Group 3: Merck (MRK) - Merck develops and sells prescription medicines, vaccines, and animal health products, with a rolling one-year beta of 0.52 [8] - The company has faced challenges, including a projected flat revenue outlook and a 56.9% annual contraction in earnings per share over the past year [9] - Despite these challenges, Merck boasts a best-in-class gross margin of 70.9% and a healthy operating margin of 55%, indicating efficient operations [10] - Merck's massive revenue base of $64.23 billion provides significant negotiating power in a highly regulated sector [11] - The company has seen improvements in adjusted operating profits and free cash flow margin, enhancing its capacity for growth initiatives and shareholder returns [11]

Key Points Altria fell short of top-line estimates in Q3, reporting a decline in revenue. Consumers are trading down to discount cigarettes due to discretionary spending pressures. The company continues to face challenges with its pivot to next-gen challenges. 10 stocks we like better than Altria Group › Shares of Altria (NYSE: MO) were heading lower last month as the Marlboro-maker disappointed investors with its third-quarter earnings report. Heading into the report at the end of the month, th ...

When it comes to income generation, investors look for high-yield and reliable dividend stocks. These three companies not only reward shareholders generously but also show resilience in challenging markets. Here are three high-yield stocks that let you earn while you sleep. Dividend Stock #1: Altria Group (MO) Dividend Yield: 6.8% More News from Barchart Among the high-yield dividend stocks, Altria (MO), the parent company of Marlboro and a leader in the U.S. tobacco industry, often is a solid choice fo ...

Core Viewpoint - Philip Morris International Inc. is recognized for its significant upside potential, supported by a strong performance in its smoke-free product portfolio and positive earnings growth [1][2]. Financial Performance - In the third quarter, Philip Morris reported a 13.2% increase in earnings per share (EPS), with diluted EPS rising 17.3% to $2.24 [2]. - The company anticipates full-year EPS growth between 13.5% and 15.1%, projecting EPS to range from $7.39 to $7.49 [3]. - Organic revenue growth is expected to be between 6% and 8% for the year [3]. Product Strategy - Philip Morris is strategically shifting from traditional cigarettes to a diverse range of smoke-free alternatives, including heated tobacco products (e.g., IQOS), e-vapor, and oral nicotine pouches (e.g., ZYN) [4]. - The company's smoke-free portfolio is outpacing industry growth, contributing to positive total volumes and top-line growth [2][3]. Analyst Ratings - Stifel has reiterated a 'Buy' rating on Philip Morris, setting a price target of $180, reflecting confidence in the company's growth trajectory [1][2].

Financial Performance - For the third quarter, adjusted diluted earnings per share increased by 3.6%, and for the first nine months, it grew by 5.9% [5][20] - Adjusted operating companies income (OCI) for the smokeable products segment grew by 0.7% to nearly $3 billion in the third quarter and by 2.5% to $8.4 billion for the first nine months [20] - Adjusted OCI margins expanded to 64.4% for both the third quarter and first nine months, representing margin growth of 1.3 percentage points and 2.7 percentage points, respectively [20] Business Segment Performance - Domestic cigarette volumes declined by 8.2% in the third quarter and 10.6% for the first nine months when adjusted for trade inventory movements and calendar differences [21][22] - Marlboro expanded its share of the premium segment by 0.3 to 59.6% in the third quarter, while the discount segment of the industry expanded by 2.4 share points year over year, with Basic capturing over half of that growth [22][23] - In the oral tobacco products segment, adjusted OCI declined by less than 1% in the third quarter, but adjusted OCI margin expanded by 2.4 percentage points to 69.2% for the first nine months [24][25] Market Data - The nicotine pouch category saw an estimated 14.5% increase in industry volume over the past six months, with ON's retail share of the total oral tobacco category at 8.7% for the third quarter [6][8] - The e-vapor category included approximately 21 million vapers at the end of the third quarter, up nearly 2 million from a year ago, with flavored disposable e-vapor products representing over 60% of the category [13][15] Company Strategy and Industry Competition - The company announced a collaboration with KT&G to explore opportunities in international innovative smoke-free products and non-nicotine products [5][18] - The FDA's pilot program to streamline PMTA reviews for oral nicotine pouches is seen as a positive development, with ON+ applications included in the program [16][17] Management Commentary on Operating Environment and Future Outlook - Management noted that consumers are under pressure but are seeing some consistency in gas prices and inflation, which may influence purchasing behavior [33] - The company raised the lower end of its 2025 guidance range, now expecting adjusted diluted EPS in the range of $5.37 to $5.45, representing a growth rate of 3.5% to 5% from a base of $5.19 in 2024 [26][27] Other Important Information - The company returned nearly $6 billion to shareholders in the first nine months, including $5.2 billion in dividends and $712 million in share repurchases [27] - The board authorized the expansion of the share repurchase program from $1 billion to $2 billion, which now expires on December 31, 2026 [27] Q&A Session Summary Question: Insights on fourth quarter earnings growth and smokeable OCI - Management acknowledged the impact of share repurchase and MSA legal fund expiration on earnings growth, emphasizing the need to monitor consumer spending in a dynamic marketplace [30][31] Question: Drivers behind moderation in cigarette industry decline - Management indicated that consistency in consumer pressures, such as gas prices and inflation, may be contributing to the moderation observed [32][33] Question: Performance and initiatives for the nicotine pouch category - Management expressed satisfaction with ON's performance despite competitive pressures and highlighted the importance of retail takeaway volume as a measure of consumer demand [36][38] Question: KT&G partnership and operational efficiencies - Management outlined three prongs of the partnership: expanding ON and ON+ internationally, exploring non-nicotine opportunities, and improving operational efficiencies [39][41] Question: ON+ pricing strategy and controllable costs - Management confirmed ON+ is positioned as a premium product and discussed the importance of long-term cost management strategies in the smokeable category [46][49]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per share increased by 3.6% in Q3 and by 5.9% for the first nine months [20] - Adjusted operating companies income (OCI) for smokeable products grew by 0.7% to nearly $3 billion in Q3 and by 2.5% to $8.4 billion for the first nine months [20] - Adjusted OCI margins expanded to 64.4% for both Q3 and the first nine months, representing margin growth of 1.3 percentage points and 2.7 percentage points respectively [20] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 8.2% in Q3 and 10.6% for the first nine months when adjusted for trade inventory movements [21] - The oral tobacco products segment saw adjusted OCI decline by less than 1% in Q3, but adjusted OCI increased by 3.3% with margin expansion of 1.8 percentage points to 69% [24][25] - Helix's reported shipment volume for on! increased by nearly 1% in Q3 and approximately 15% for the first nine months [8] Market Data and Key Metrics Changes - The nicotine pouch category grew to 55.7 share points, an increase of 11.1 share points year-over-year [7] - The e-vapor category included approximately 21 million vapers, up nearly 2 million versus a year ago [13] - The discount segment of the industry expanded by 2.4 share points year-over-year, with Basic capturing over half of that growth [23] Company Strategy and Development Direction - The company is focusing on expanding its smoke-free portfolio and exploring international opportunities through a collaboration with KT&G [5][18] - The launch of on! PLUS is seen as a premium product aimed at appealing to both adults who dip and competitive nicotine pouch consumers [10] - The company is committed to returning value to shareholders, as evidenced by a recent dividend increase and an expansion of the share repurchase program [5][27] Management Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure but are seeing some consistency in gas prices and inflation [33] - The company is optimistic about the regulatory environment, particularly with recent FDA actions that may streamline product authorizations [16] - The company raised the lower end of its 2025 guidance range, expecting adjusted diluted EPS in the range of $5.37-$5.45, representing a growth rate of 3.5%-5% from a base of $5.19 in 2024 [26] Other Important Information - The company returned nearly $6 billion to shareholders in the first nine months, including $5.2 billion in dividends and $712 million in share repurchases [27] - The balance sheet remains strong, with a debt to EBITDA ratio of 2x as of September 30 [28] Q&A Session Summary Question: Insights on fourth quarter earnings growth and smokeable OCI - Management acknowledged the impact of share repurchase and MSA legal fund expiration on earnings growth, while monitoring consumer spending in a dynamic marketplace [31] Question: Drivers behind the moderation in cigarette industry decline - Management indicated that consistency in consumer pressures and stepped-up enforcement in e-vapor are influencing market dynamics [34] Question: Performance and positioning of on! in a competitive environment - Management expressed satisfaction with on!'s performance despite competitive pressures, highlighting steady retail takeaway volume [37] Question: Opportunities from the KT&G partnership - Management outlined three prongs of the partnership: expanding modern oral initiatives, exploring non-nicotine opportunities, and improving operational efficiencies [40] Question: Pricing strategy for on! PLUS - Management confirmed that on! PLUS is positioned as a premium product, with introductory price promotions planned for its launch [48] Question: Impact of FDA pilot program on product launches - Management emphasized the importance of a functioning regulatory system and indicated that decisions will be made in the long-term best interest of the company [57]