Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe tobacco principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands, as well as provides on! oral nicotine pouches. It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia.
Altria's main product is cigarettes, a business line that has seen severe volume declines. Altria's historically high dividend yield is alluring, but Hormel Foods is also offering a historically high yield.
The retail sector can be broadly divided into consumer staples and discretionary. As the name suggests, staples typically imply essential products used by consumers.
We believe there is still a chance to make a double digit move to the upside, notes Aquiles Larrea on Boeing (BA). He and Ben Lichtenstein discuss today's big three stocks Boeing, Caterpillar (CAT), and Altria (MO).
The Zacks Tobacco industry companies have been grappling with soft cigarette volume and elevated cost hurdles. However, pricing power and strength in smoke-free products work well for Philip Morris (PM), Altria Group (MO) and British American Tobacco (BTI).
Altria's ~14% stock price rise YTD is supported by multiple factors like a high dividend yield, increased share buybacks and upgraded earnings outlook. These override any impact the otherwise weak Q1 2024 results might have had, especially as the adjusted earnings were impacted by shrinking revenues. Even though MO's P/E has inched up this year, price gains are still possible, or at the very least, a price decline is unlikely and its dividend yield is robust.
As a long-term income investor, I've always enjoyed quality, high-yield dividend stocks. Dividend stocks offer the rare combination of income and capital growth that compensates for the missing realized income you might have if you did sell the stock.