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Universal Corporation

Universal Corporation is a business-to-business agriproducts company that supplies leaf tobacco and plant-based ingredients to food and beverage end markets worldwide. It operates in two segments: Tobacco Operations and Ingredients Operations. The Tobacco Operations segment procures, processes, and packs flue-cured, burley, dark air-cured, and oriental leaf tobacco for consumer product manufacturers, and provides related services such as custom blending, chemical and physical testing, service cutting, reconstituted leaf tobacco manufacturing, just-in-time delivery, liquid nicotine, and recycled waste materials. The Ingredients Operations segment produces specialty plant-based ingredients, including fruits, vegetables, herbs, juices, concentrates, purees, nutraceuticals, fibers, seeds, extracts, distillates, natural flavors, and colors for consumer-packaged goods manufacturers, retailers, and food and beverage companies. Founded in 1918, the company is headquartered in Richmond, Virginia.

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Universal Corp shares plunge 6% after Q1 earnings miss and tobacco operating income collapses 90%

Universal Corp shares fell 6.08% to $47.75, breaking below their 52-week low, after the leaf-tobacco merchant reported a sharp first-quarter fiscal 2027 earnings miss. Adjusted EPS came in at negative $0.20, missing the $0.25 consensus, while revenue of $523.78 million fell short of the $587 million estimate and declined 11.79% year over year. The core Tobacco Operations segment saw revenue drop 13% to $437.13 million and operating income collapse 90% to $3.47 million, driven by a 9% volume decline and 6% price decline amid oversupply in flue-cured and burley markets. The Ingredients segment also posted an operating loss on weak CPG demand and elevated fixed costs. In contrast, Altria and Philip Morris traded only modestly lower after recent strong earnings, while Turning Point Brands surged 16% on the week after Modern Oral pouch revenue jumped 149%. Universal's 56-year dividend streak, yielding 6.43%, anchors the bull case as management expects tobacco shipments to rebound in the second half of fiscal 2027.
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Altria and Universal Corp offer dividend yields of at least 5.9% and have raised payouts for over 50 years

Altria Group and Universal Corp are two Dividend Kings yielding at least 5.9% that have annually increased their dividends for at least 50 years. Altria, owner of Marlboro and other tobacco brands, currently yields 5.9% with a projected $4.24 per share annual dividend and a payout ratio around 75% based on adjusted earnings guidance of $5.56 to $5.72 per share. Universal Corp, a global leaf tobacco supplier with a 56-year dividend growth streak, yields 6.5% after raising its quarterly dividend by a penny in May to an annualized $3.32 per share, with analysts projecting adjusted earnings of $4.30 per share for the current fiscal year. Both companies show dividend coverage from earnings and free cash flow, supporting continued modest increases.
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