Altria Group

Altria Group's Philip Morris USA unit has entered a new contract manufacturing arrangement with overseas affiliates of Philip Morris International to improve operational efficiency. The agreement is designed to enhance PM USA's manufacturing efficiency while generating economic benefits that can support future investment, with each company retaining responsibility for its own commercialization, distribution and regulatory activities. The initiative supports Altria's 2028 Enterprise Goals and could provide transferable capabilities for its international nicotine efforts. In the second quarter of 2026, Altria's smokeable-products adjusted operating companies income rose 2.4% to $3.02 billion, while domestic cigarette shipment volume declined 3.2%.

Altria Group and Philip Morris International have entered into reciprocal contract manufacturing arrangements designed to improve manufacturing efficiency and expand operational flexibility. The first shipments are expected in 2027, and both companies said the agreements are not expected to have a material impact on their 2026 results. Altria is looking to increase cigarette imports and exports and capitalize on the U.S. double duty drawback system, which allows tobacco companies to recover certain federal excise taxes previously paid on products that are later exported. For Philip Morris, the agreement provides access to Altria's manufacturing capabilities while allowing it to maintain its existing international-focused cigarette strategy, and the company emphasized that the arrangement does not mean it plans to sell cigarettes in the U.S.

Altria Group raised the lower end of its 2026 earnings outlook after reporting year-over-year adjusted earnings growth in its second quarter, even as results missed consensus estimates. Management cited pricing power, margin gains, and cigarette import/export benefits as key supports for future profit resilience despite declining U.S. cigarette volumes and uneven oral tobacco performance. The company also continued share repurchases, buying back about 22.4 million shares for roughly US$1,337.9 million under its latest plan, which supports per share earnings growth. Altria's narrative projects $20.9 billion revenue and $9.7 billion earnings by 2029, assuming flat yearly revenue and a roughly $1.7 billion earnings increase from $8.0 billion today.

Altria Group is leaning on pricing, margins and shareholder returns to keep earnings resilient as U.S. cigarette demand declines, with second-quarter smokeable revenues net of excise taxes rising 2% and adjusted operating companies income increasing 2.4% to $3.02 billion. Smokeable price realization was 4.5%, led by Marlboro pricing, which helped counter lower shipment volume and supported Altria's narrowed 2026 adjusted earnings guidance of $5.61 to $5.72 per share. Domestic cigarette shipments fell 3.2% in the second quarter, while Altria's discount cigarette shipments jumped 67.3%, and industry discount retail share reached 33.8%, up 2.6 percentage points year over year. In smoke-free, on! PLUS expanded to about 120,000 stores and first-half on! shipments increased 5.1%, but Oral Tobacco Products revenues fell 5.3% and adjusted operating companies income declined 8%. Altria trades at 11.6 times forward 12-month earnings, below the Zacks sub-industry's 15.4 times and the S&P 500's 20.3 times, but above its five-year median of 9.7 times. The company paid about $3.6 billion in dividends and repurchased $335 million of shares in the first half of 2026, with a dividend yield of 6.33% and a payout ratio of 76%. MO currently carries a Zacks Rank #3 (Hold), with a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D.

Altria resumed shipments of 12-milligram on! PLUS nicotine pouches in three states during the second quarter of 2026, with national expansion planned for the third quarter. The on! PLUS rollout reached about 120,000 stores, covering roughly 90% of nicotine product volume, and helped drive on! retail share to 8.6%, up 0.8 percentage points sequentially. The nicotine pouch category grew 8.1 share points and represented nearly 60% of the total oral tobacco category. Additional flavors across 6-milligram, 9-milligram and 12-milligram strengths, starting with Blueberry Mint and Mango Pineapple, are planned for the fourth quarter.

Altria Group's smokeable products segment saw domestic cigarette shipment volume fall 3.2% year over year in the second quarter of 2026, but net revenues net of excise taxes rose 2% as higher net pricing offset the decline. Excluding trade inventory movements, the volume decline was estimated at 4.5%, compared with an estimated 5% decline for the overall U.S. cigarette industry. Smokeable price realization was 4.5%, driven by strong net pricing for Marlboro, though partly offset by a greater mix of the lower-priced Basic brand as some adult smokers traded down. Adjusted operating companies income increased 2.4% and adjusted OCI margin expanded 30 basis points to 64.8%, with higher pricing and refunds of taxes and duties on imported cigarettes more than offsetting lower shipment volumes, increased promotional investments, a greater mix of discount products, and higher costs. The quarter demonstrated that pricing continued to help offset the financial impact of lower cigarette shipment volumes, even as changing consumer purchasing patterns and a growing mix of discount products remain challenges.

Altria Group reported strong first-half results with adjusted diluted earnings per share growth of 4.9% and raised the low end of its full-year guidance. The company returned nearly $3.9 billion to shareholders through dividends and share repurchases, while its On+ nicotine pouch product expanded to 120,000 stores nationwide, driving sequential retail share gains of 0.8 points. Smokable products segment adjusted operating companies income grew 2.4% in the second quarter and 4.2% in the first half, with margins expanding to 64.8% and 64.9% respectively. However, the oral tobacco products segment saw adjusted operating companies income decline 8% in the second quarter due to strategic investments behind On+ and difficult prior-year comparisons, and Marlboro's overall retail share declined 1.5 share points year-over-year amid trade-down dynamics. CEO Sal Mancuso noted that the national expansion of the 12-milligram On Plus and flavor extensions will require investment, but the company feels good about narrowing guidance and looks forward to the second half.

Altria Group shares have climbed roughly 25% year to date, beating the broader market's 19% gain and leading major tobacco peers. The stock, which appears in Donald Trump's disclosed portfolio, advanced about 24% over the trailing 12 months, while Philip Morris rose 21% and British American Tobacco and Japan Tobacco each gained 10%. Altria's first-quarter 2026 results topped estimates, with net revenue up 3.2% year over year on pricing and adjusted diluted EPS growth accelerating to 7.3% from 4.4% in 2025. Smokeable segment volume declined just 4%, a sharp improvement from a 12% drop a year earlier, and the on! PLUS nicotine pouch brand rolled out nationwide in March, reaching roughly 100,000 stores and covering 85% of the nicotine pouch category by volume. Despite the rally, the stock trades at about 13 times forward earnings, a 14% discount to the sector median, though its forward PEG ratio near 3.47 runs about 72% above peers and its price-to-sales ratio of roughly 6 times is about six times the sector median, reflecting weak trailing revenue growth of 0.65% and a 20% drop in diluted EPS over the past year.

Altria heads into its July 30 second-quarter 2026 earnings report with a 5.83% dividend yield and a forward price-to-earnings ratio of just 13. The company has raised its dividend for 56 consecutive years and returned $8 billion to shareholders in 2025, including $1.8 billion in first-quarter 2026 dividends and $280 million in share repurchases. Its quarterly dividend was increased 3.9% to $1.06 per share in mid-2025, while the debt-to-EBITDA ratio stands at a conservative 1.9 times. First-quarter 2026 results beat estimates, with adjusted earnings per share of $1.32 surpassing the $1.2462 consensus and revenue of $5.43 billion exceeding the $4.58 billion forecast, sending the stock up 6.52%. By comparison, Philip Morris International trades at 23 times forward earnings with a 3.08% yield, meaning Altria offers roughly 90% more current income per dollar invested at about half the earnings multiple.

Five dividend-paying companies removed from the Dow Jones Industrial Average over the past few decades went on to deliver strong returns, with some surging more than 150% while continuing to pay dividends above 5%. Altria, booted in 2008, saw its shares rise over 150% excluding dividends and has raised its payout for 57 consecutive years, most recently by 3.9% to $1.06 per share. AT&T, removed in 2015 to make room for Apple, still yields 5.06% and holds a Buy rating from 13 analysts. Exxon Mobil, dropped in August 2020 after 92 years, kept raising its dividend and later completed a $59.5 billion all-stock acquisition of Pioneer Natural Resources. International Paper, kicked out in April 2004, rebounded about 25% and delivered a total return over 100% with dividends factored in, while Pfizer, also removed in the August 2020 reshuffle, pays a 6.93% dividend and projects 2026 revenue between $59.5 billion and $62.5 billion.

The US Food and Drug Administration issued a proposal requiring foreign tobacco manufacturers to register their establishments and list the products they sell in the country, a move that bolsters the outlook for Altria Group. The proposed rule would close a regulatory gap that exempted foreign entities from registration and product listing requirements, putting them on par with domestic manufacturers and making it easier to identify illegal foreign tobacco products. Foreign manufacturers would also be required to maintain records of product labeling, advertising, and consumer information. The proposal is part of an effort to strengthen the FDA's ability to identify illegal foreign tobacco products and would lessen competition for Altria, especially from illegal foreign products that have proliferated in the market. Altria is one of the top dividend stocks in the Renaissance Technologies portfolio with a yield of 5.83%.

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.

Altria Group stock appears undervalued by 45.6% relative to a Discounted Cash Flow intrinsic value estimate of about $132 per share, based on the company's latest twelve-month free cash flow of roughly $8.7 billion. The stock also screens as undervalued on earnings-based multiples, trading at a price-to-earnings ratio of about 14.9 times compared with a tailored fair P/E of around 20.2 times. However, broader valuation checks are mixed, with Altria passing four of six tests. The apparent discount comes as the company navigates ongoing declines in traditional cigarette volumes and regulatory pressure while expanding its smoke-free product portfolio. Altria has returned 126.1% over the past five years and 32.0% over the last year.

With the S&P 500 trading at 25.7 times trailing earnings and sticky inflation dimming rate-cut hopes, Wall Street analysts warn a 10% summer sell-off could be imminent. Altria yields 6% backed by Marlboro's 40% U.S. cigarette market share, while Enbridge has raised its dividend for 31 straight years with 98% of earnings under fixed contracts. Realty Income has paid 667 consecutive monthly dividends and maintained occupancy above 96.6% this century, and VICI Properties offers a 6.88% yield from triple-net leased casino properties. Verizon trades at just 9 times forward earnings, has raised its dividend for 20 consecutive years, and expects at least $21.5 billion in free cash flow this year. All five stocks are Buy-rated at top Wall Street firms and are highlighted as defensive high-yield picks likely to hold up better in a downturn.

Altria shares have jumped 24% this year, far outpacing Alphabet's 13% gain, as the tobacco giant benefits from its 5.5% dividend yield and a track record of 60 dividend increases over 56 years. The company reaffirmed its 2026 full-year adjusted diluted EPS guidance of $5.56 to $5.72, representing 2.5% to 5.5% growth from a 2025 base of $5.42. First-quarter revenue rose 3.2% to $5.43 billion, and reported diluted EPS more than doubled to $1.30. Altria's top brand Marlboro accounts for over 90% of sales, though the company faces ethical concerns as the CDC reports 480,000 American smoking-related deaths annually.

Altria Group and Turning Point Brands present contrasting investment cases in the tobacco sector. Altria, with its dominant Marlboro brand, generated nearly $20.1 billion in revenue and $6.95 billion in net income in fiscal 2025, while Turning Point Brands posted $463.1 million in revenue and $58.2 million in net income, a 28% year-over-year increase. Altria offers a forward dividend yield of nearly 6% and a forward price-to-earnings ratio of 13.0, compared to Turning Point's yield of less than 1% and forward P/E of 62.9. The analysis concludes that Altria is the better buy due to its strong dividend and lower valuation, despite headwinds from declining smoking rates and regulatory challenges.

Altria, the largest U.S. tobacco company, offers a forward dividend yield of 5.8% and has raised its payout 60 times over 56 years, making it a Dividend King. The company spent only 81% of its free cash flow on dividends over the past 12 months, supporting sustainability. Altria aims to generate at least $5 billion in smoke-free revenue by 2028, equivalent to 24% of projected sales, driven by brands like NJOY e-cigarettes and On! nicotine pouches. Analysts expect earnings per share to grow at a 13% compound annual growth rate from 2025 to 2028, and the stock trades at 13 times this year's earnings. The company is insulated from tariffs as it produces and sells nearly all products domestically.

StockStory highlights Altria as a standout S&P 500 stock with competitive advantages, while naming Stanley Black & Decker and Mettler-Toledo as two to avoid. Altria, known for its Marlboro brand, boasts a best-in-class gross margin of 87.7% and an operating margin of 52.7% that has been rising, reflecting a highly efficient business model and strong free cash flow generation. In contrast, Stanley Black & Decker has seen no organic revenue growth over the past two years, flat projected sales, and a 15.4% annual decline in earnings per share over five years. Mettler-Toledo faces soft organic revenue growth, estimated sales growth of just 4.7% for the next 12 months, and diminishing returns on capital. Altria trades at 12.7 times forward earnings, while Stanley Black & Decker and Mettler-Toledo trade at 16 times and 27.1 times forward earnings, respectively.

Zacks Investment Ideas is featuring Eli Lilly and Altria as investors rotate into defensive sectors ahead of a pivotal week. The Federal Reserve under new Chair Kevin Warsh has shifted its outlook, with the dot plot now projecting a rate hike and futures pricing a 62% chance of tightening in September. The June jobs report due Thursday could harden the hawkish case if strong, while a soft print may revive hopes for a hold. Money has flowed into consumer staples and healthcare, with Eli Lilly offering growth through its newly approved oral GLP-1 pill Foundayo and Altria providing a roughly 6% dividend yield and a 57-year streak of increases.

The Federal Reserve under new Chair Kevin Warsh has pivoted to a hawkish stance, with the dot plot now projecting a rate hike instead of a cut and futures markets pricing a 62% chance of tightening in September. The June jobs report, due Thursday, could harden that case if it shows continued labor market strength after May's 172,000 payroll gain. Goldman Sachs has scrapped its 2026 rate-cut forecast, and investors have rotated into defensive sectors like consumer staples and healthcare. Eli Lilly and Altria are highlighted as stocks that may benefit from this shift, with Lilly offering growth via its new oral GLP-1 drug Foundayo and Altria providing a 6% dividend yield and low volatility.

Five Dividend Kings—companies with 50 or more consecutive years of dividend increases—offer retirees dependable income and stability as markets rotate away from volatile tech names. Altria yields 5.9% after its 57th consecutive dividend hike, while Kimberly-Clark pays nearly 5% after its shares fell 23% in 2025. Hormel Foods offers a 4.77% yield and is restructuring to cut costs, Sonoco Products pays 4.20% and makes constantly in-demand packaging, and Genuine Parts has raised its dividend for 69 consecutive years, trades at just 12 times forward earnings, and holds a Raymond James Strong Buy rating.

StockStory identifies Alarm.com as a value stock to avoid, citing underwhelming billings growth of 8.4% and estimated sales growth of 3.6% for the next 12 months, while its operating margin failed to improve. In contrast, the firm highlights Altria, trading at 12.1 times forward earnings, for its 87.7% gross margin and 52.7% operating margin, and CBIZ, at 6.9 times forward earnings, for 30.3% annual revenue growth and 22.9% annual earnings per share growth over two years.

Shares of Johnson & Johnson, Altria, and Verizon each rose at least 3% on Tuesday as traders rotated out of high-flying semiconductor stocks and into less volatile, dividend-paying blue chips. The rally in artificial intelligence chip stocks lost steam, driving investors toward defensive names with steady cash generation. Johnson & Johnson has raised its dividend for 64 consecutive years, Altria offers a yield of nearly 6%, and Verizon trades at less than 10 times projected earnings while targeting up to 1 million new retail postpaid phone subscribers in 2026.

Brown-Forman reported third-quarter revenue of $1.04 billion, a 5.4% decline from a year earlier, beating analyst estimates by 1.7% but missing EBITDA expectations. The 14 beverages, alcohol, and tobacco stocks tracked by StockStory collectively beat revenue consensus by 4.7%, though next-quarter guidance came in 3% below estimates. Vita Coco was the standout performer with revenue surging 37.3% to $179.8 million, exceeding forecasts by 20.5%, while Boston Beer lagged with a 4.4% revenue drop to $433.9 million and significant misses on operating income and EPS. Altria posted a 5.3% revenue gain to $4.76 billion, and Monster Beverage grew 26.9% to $2.35 billion, both topping analyst expectations.

Bank of America now expects three 25-basis-point Federal Reserve rate hikes this year, in September, October, and December, which would take the policy rate to 4.25-4.5%. The firm had been skeptical of the need for cuts in 2025 and now believes the Fed will reverse those cuts quickly, citing sticky inflation that could push Core PCE to 3.5% in May. Against this backdrop, Bank of America screened for quality dividend payers across four sectors that tend to benefit from rising rates, highlighting Wells Fargo in financials, Chevron in energy, Merck in healthcare, and Altria in consumer staples. Altria's annual dividend of $4.24 per share currently yields 6.1%, while Chevron pays a substantial 3.84% dividend, which was raised by 5% earlier this year. All four stocks are rated Buy by top Wall Street firms.

Coca-Cola has returned about 13.6% since the start of the calendar year, outpacing the average 6.6% gain of the Consumer Staples sector. The stock holds a Zacks Rank of 2, or Buy, and its full-year earnings consensus estimate has risen 0.7% over the past quarter. Within its Beverages - Soft drinks industry, which has gained an average of 11.4% year-to-date, Coca-Cola is also performing better. Another Consumer Staples stock, Altria, has returned 19.9% so far this year, with its current-year EPS estimate up 1.3% over the past three months and a Zacks Rank of 2.