Federal Reserve Governor Stephen Miran, whose term ends on January 31, argued in a recent Fox Business interview that the Fed should implement well over 100 basis points (or one percentage point) of rate cuts this year to support economic growth. Miran contends that the current monetary policy is clearly restrictive and holding the economy back. He believes underlying inflation is basically at the Fed's 2% target. He has consistently advocated for more aggressive rate reductions, having been the sole dissen ...

Key Points Altria is a large consumer staples company with an industry-leading brand. The stock boasts a growing dividend to back its huge 7.4% yield. Long-term investors need to pay attention to this troubling business trend. 10 stocks we like better than Altria Group › Altria (NYSE: MO) sells Marlboro cigarettes in the United States. It is one of the best-known brands in the world, at least among smokers. Add in Altria's steadily growing dividend and a 7.4% yield, and it would seem like this is ...

Valued at $96.8 billion by market cap, Altria Group, Inc. (MO) is a leading tobacco company and consumer staples holding firm headquartered in Richmond, Virginia. It is one of the largest manufacturers and marketers of smokeable and oral tobacco products in the United States, with its most prominent brands including Marlboro cigarettes, Black & Mild cigars, and smokeless tobacco products such as Copenhagen and Skoal. Altria Group is ready to release its fourth-quarter results soon. Ahead of the event, an ...

Core Insights - Long-term investing for children is evolving into a comprehensive wealth-building ecosystem, driven by new legislation and increased flexibility in tax-advantaged accounts [1] - The assets in youth-focused investment accounts, such as 529 plans and ABLE accounts, have grown significantly, reaching approximately $568 billion as of June 30, 2025, up from $508 billion in mid-2024 [2] - The introduction of "Trump accounts" under the One Big Beautiful Bill Act (OBBBA) will provide a one-time $1,000 seed contribution for children born between January 1, 2025, and December 31, 2028, with annual contributions allowed up to $5,000 [4] Youth Investment Trends - The "Roth-ification" of 529 plans allows families to roll over up to $35,000 into a Roth IRA, enhancing the long-term utility of these accounts [3] - The global child and youth services market is projected to grow at about 8% annually, potentially surpassing $235 billion by 2032 [5] Company-Specific Insights - Altria Group, Inc. (NYSE:MO) has a total return of 40.54% over the past five years, with recent FDA approval for new nicotine pouch products expected to drive growth [9][10] - Kite Realty Group Trust (NYSE:KRG) has a total return of 60.56% over the past five years, recently announcing a special cash dividend and completing significant property dispositions to enhance portfolio quality [14][15][17]

When I last wrote about Marlboro cigarette producer Altria Group ( MO ) in late August, its prospects looked great. The actual stock performance has been anything but, with an 11% drop in price since.Manika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the th ...

Core Viewpoint - Philip Morris International is positioned to expand its leadership in the tobacco industry, particularly in the smoke-free product segment, with significant growth potential in the U.S. market [1][2][10] Company Overview - Philip Morris has seen a strong performance in 2023, with shares up over 24% since January despite a 20% drop from its peak [1] - The company has successfully transitioned towards smoke-free alternatives, with these products now accounting for 41% of its revenue [3] Product Development - Philip Morris was an early entrant in the heat-not-burn market with its Iqos device and has strengthened its portfolio by acquiring Swedish Match, which owns the popular Zyn brand [3][5] - The company is awaiting FDA approval for its latest heat-not-burn device, Iqos Iluma, which could significantly enhance its market presence in the U.S. [7][8] Market Opportunity - The U.S. market represents a substantial growth opportunity, with Altria's smokeable product sales reaching $21.2 billion last year [6] - Philip Morris has a 72% success rate in converting traditional smokers to its Iqos product, indicating strong potential for market penetration [6] Sales Performance - Zyn brand sales have surged, with 204.9 million cans sold in the U.S. during the third quarter, marking a 37% increase year-over-year [9] - A successful launch of Iqos Iluma could further boost Zyn's growth and overall market share for Philip Morris in the U.S. [9][10] Financial Outlook - Philip Morris is viewed as a strong dividend stock, currently yielding 4%, with analysts projecting an annualized earnings growth rate of 11% over the long term [10]

Core Viewpoint - Altria Group's shares may have further room to decline before reaching deep-value territory, despite appearing undervalued based on low forward P/E and high dividend yield [1][9]. Financial Performance - Current stock price is $58.69 with a market cap of $99 billion, and a forward P/E ratio of 10.4, significantly lower than Philip Morris International's 18.5 [2][9]. - Altria's gross margin stands at 71.98% and the dividend yield is 7.02% [2]. Sales and Shipment Volumes - Marlboro-branded shipment volumes fell by 11.7%, indicating a potential shift of smokers to lower-priced brands or alternatives [4][5]. - Shipment volumes for smokeless tobacco brands Skoal and Copenhagen decreased by 17.1% and 12.4%, respectively, while on! nicotine pouch volumes only increased by 0.7% [6]. Market Reaction - Following a quarterly earnings release, Altria's shares dropped nearly 8% due to disappointing shipment volumes and weak guidance updates [7]. - Despite a slight recovery, shares remain at risk of further volatility [7]. Competitive Landscape - Altria's revenue from alternative products is only 14%, compared to 41% for Philip Morris and 18.2% for British American Tobacco, indicating a slower transition to smoke-free products [10][11]. - The current valuation of Altria may not expand unless significant changes occur in its sales volumes or product diversification strategies [12]. Investment Strategy - Investors are advised to wait for lower prices or significant changes in Altria's strategy before considering buying the stock [8][14]. - Potential catalysts for change could include breakthroughs in collaborations or mergers that enhance smoke-free product exposure [14].

Core Viewpoint - Altria's stock appears inexpensive with a high dividend yield, but further analysis is necessary to determine if it is a genuine investment opportunity or a potential value trap [1][3]. Group 1: Company Performance - Altria has experienced a 15% drop in share price recently, yet it still outperforms major exchange-traded funds in the consumer-packaged goods sector [4]. - The stock trades at a price-to-earnings ratio of 13 and is recognized as a Dividend King, having increased its dividend payout 60 times over 56 years, currently yielding 7.29% [6]. - Altria's debt-to-EBITDA ratio stands at 2x, indicating manageable leverage, which supports its ability to maintain dividend payouts [7]. Group 2: Revenue Trends - In the third quarter, Altria's net revenue fell by 3%, with Marlboro shipments down 11.7% and overall U.S. cigarette volume decreasing by 8.2% [9]. - Cigarettes are projected to account for over $8 of every $10 in Altria's sales in the coming years, highlighting the importance of this segment [9]. Group 3: Diversification Efforts - Although Altria is not solely reliant on cigarettes for revenue, its attempts to diversify, such as investments in Cronos and Juul Labs, have not been successful [10]. - Past missteps in management's strategy to enter higher-growth categories raise concerns about the company's future growth potential, especially given the limited growth opportunities in the U.S. cigarette market [11].

Core Insights - Dividend stocks can significantly enhance long-term capital appreciation, with 85% of the S&P 500's cumulative total return from 1960 to 2023 attributed to reinvested dividends [1] Group 1: Importance of Quality in Dividend Stocks - Quality may be more important than yield when selecting dividend stocks, as high-yield stocks often come with increased risk [2] - Investors are encouraged to focus on stocks with a strong track record of earnings and dividend growth consistency rather than just high yields [2] Group 2: Recommended Dividend Stocks - Five high-quality dividend growth stocks recommended for long-term holding include Lowe's, NextEra Energy, Realty Income, Philip Morris International, and United Parcel Service [3] Group 3: Lowe's Companies - Lowe's has raised its dividend for 62 consecutive years, with a current forward dividend yield of 2% [4] - The quarterly payout has increased from $0.28 to $1.20 per share since 2015, representing over 15% annualized growth [6] - The current dividend payout ratio is around 38%, indicating potential for continued aggressive dividend increases [7] Group 4: NextEra Energy - NextEra Energy has raised its dividend for nearly 30 years, currently offering a 2.7% dividend yield [9] - The company's quarterly dividend has nearly tripled since 2015, despite a post-pandemic slump in renewable energy stocks [10] - A recent deal with Google to supply electricity for data centers may bolster long-term growth prospects [10] Group 5: Realty Income - Realty Income has achieved 112 consecutive quarterly dividend increases, equating to 28 years of growth [11] - The stock offers a forward dividend yield of 5.5% and pays dividends monthly, appealing to income-focused investors [12] - Since going public in 1994, Realty Income has generated compound annual total returns of 13.5% and annualized dividend growth of 4.2% [13] Group 6: Philip Morris International - Philip Morris is transitioning towards smoke-free products, which may enhance its future prospects [15] - The company has raised its dividend annually since its 2008 spinoff, currently offering a forward dividend yield of 3.8% [17] Group 7: United Parcel Service - UPS has a forward dividend yield of nearly 7%, but this may indicate dividend uncertainty [18] - The company has a long history of dividend increases, suggesting a commitment to maintaining its dividend growth track record [19] - Cost-saving measures through downsizing and automation could lead to $3.5 billion in annual savings, supporting future dividend security [20]

Core Insights - Philip Morris International (PMI) has shown significant stock performance, with a 68% increase over the past two years and a 22% rise year-to-date, indicating strong investor interest despite regulatory challenges in the tobacco industry [1][2][4] - The company is transitioning towards a smoke-free future, focusing on innovative products like iQOS and ZYN, which are gaining traction in the market [5][12][21] - PMI has a strong dividend history, raising dividends for 18 consecutive years, with a recent increase of nearly 9%, resulting in a yield close to 4% [9][10][22] Stock Performance - PM stock has surged 68% over the past two years and 12% in the last 52 weeks, with a year-to-date increase of about 22% [1][2] - The stock is currently trading at 20.9 times forward adjusted earnings, reflecting a premium investors are willing to pay for its transition to smoke-free products [8] - Despite a recent dip of 10% in the stock price, analysts view this as a potential buying opportunity, with several maintaining "Buy" ratings and optimistic price targets [6][17][20] Financial Performance - PMI reported Q3 revenue of $10.8 billion, a 9.4% year-over-year increase, driven by strong pricing in combustible tobacco and growth in smoke-free products [11][12] - Adjusted EPS for Q3 was $2.24, up 17.3% annually, exceeding expectations due to record smoke-free profits [11] - The company has a payout ratio of 74.7%, indicating a commitment to returning cash to investors [10] Future Outlook - For 2025, adjusted EPS is forecasted between $7.46 and $7.56, suggesting growth of 13.5% to 15.1%, with total product volume expected to rise by about 1% [14][16] - Organic revenue growth is projected between 6% and 8%, with capital expenditures focused on smoke-free innovations [15] - Analysts expect continued growth in smoke-free product revenues, with a strong market presence anticipated for iQOS and ZYN [19][20] Market Position - PMI is one of the largest tobacco companies globally, with a market capitalization of approximately $244.2 billion and a workforce of over 83,000 [3] - The company is navigating regulatory pressures and declining smoking rates by investing in smoke-free alternatives, which are now 41% of total sales [12][21] - The stock has a consensus "Moderate Buy" rating, reflecting confidence in PMI's resilience and long-term growth potential [20][22]