Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand; moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands; oral nicotine pouches under the on! brand; and e-vapor products under the NJOY ACE brand. It sells its products to distributors, as well as large retail organizations, such as chain stores. The company was founded in 1822 and is headquartered in Richmond, Virginia.

Altria Group, Inc.

Key Points
Philip Morris International operated outside the U.S. for years, but has entered the market with smoke-free products.
Sales of Iqos Iluma in the United States could be a game changer once approved.
Adding the upside from the U.S. nicotine market to Philip Morris International's existing business makes the stock a no-brainer to buy and hold.
Philip Morris International (NYSE: PM) has been a strong performer this year. The stock has fallen 20% from its high, yet shares are still up by more than 24% since January, outpacing the broader stock market.
The tobacco stock has emerged as a clear winner in the new-look nicotine and tobacco space, where traditional cigarettes and chewing tobacco are losing ground to smoke-free alternatives, such as electronic vapes, heat-not-burn devices, and oral nicotine salt pouches.
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Philip Morris was an early mover in the heat-not-burn market with Iqos. Then, it acquired Swedish Match a couple of years ago, giving it ownership of Zyn, the most popular oral nicotine brand. Smoke-free products now account for 41% of the company's revenue. Meanwhile, Philip Morris continues to sell Marlboro cigarettes in almost every country except the United States.
Next, the company could hit a new gear entirely in 2026. Here is what you need to know.
Welcome to America
Philip Morris International was formerly part of Altria Group until a spinoff in 2008. For years, Altria sold Marlboro cigarettes in the United States, while Philip Morris sold them internationally. However, Philip Morris has recently begun to encroach on the lucrative U.S. market with other products.
The company established a foothold in the U.S. with Zyn and is now targeting Altria and other traditional cigarette companies with Iqos. Philip Morris developed Iqos years ago as an alternative to cigarettes, and it has thrived in foreign markets. The device heats tobacco to the point of producing vapor, but not enough to burn it and cause it to smoke.
The U.S. market offers a massive growth opportunity, even for the world's largest publicly traded tobacco company. Altria's sales of smokeable products totaled $21.2 billion last year. Philip Morris reports an approximate 72% success rate in converting smokers to Iqos.
Ready to ignite growth in 2026
Philip Morris is currently awaiting FDA approval to sell Iqos Iluma in the United States, the latest and most advanced version of its heat-not-burn device, launched following a patent dispute with British American Tobacco.
It's now been more than two years since Philip Morris filed its application for Iluma in October 2023. Based on past approvals, a decision should come soon. In the meantime, Philip Morris has conducted small-scale test launches using its old Iqos device in a couple of cities.
Assuming Iluma is approved, Philip Morris would likely begin a broad U.S. launch campaign. That could pour gas on a red-hot Zyn brand, which sold a whopping 204.9 million cans in the United States during the third quarter alone, a 37% increase over the prior year.
Gobbling up market share in a massive United States market will likely bolster growth at Philip Morris for the foreseeable future, making it a fantastic dividend stock to buy and hold. The stock already yields 4%, and analysts estimate the business will grow earnings at an annualized rate of 11% over the long term.
If all goes according to plan, investors might look back at 2026 as a pivotal year and the stock's current dip as a no-brainer buying opportunity.
Should you invest $1,000 in Philip Morris International right now?
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Philip Morris International: Why 2026 Could Be the Tipping Point for Its Smoke-Free Dominance

Bristol Myers Squibb today announced that its Board of Directors has declared a quarterly dividend of sixty-three cents per share on the $0.10 par value common stock of the company. The dividend is payable on February 2, 2026, to stockholders of record at the close of business on January 2, 2026. This quarterly dividend represents a 1.6% increase over last year's quarterly rate of sixty-two cents per share. At this quarterly dividend rate, subject to the normal quarterly review by the Board of Directors, the annual dividend rate for the fiscal year 2026 is $2.52 per share. This marks the 17th consecutive year that the company has increased its dividend and the 94th consecutive year that the company has paid a dividend.
Stryker announced that its Board of Directors has declared a quarterly dividend of $0.88 per share payable January 30, 2026, to shareholders of record at the close of business on December 31, 2025, representing an increase of 4.8% versus the prior year and previous quarter.
The Board of Directors of Mondelez International today declared a regular quarterly dividend of $0.50 per share of Class A common stock. This dividend is payable on January 14, 2026, to shareholders of record as of the close of business on December 31, 2025.
The Board of Directors of Colgate-Palmolive today declared a quarterly cash dividend of $0.52 per common share, payable on February 13, 2026, to shareholders of record on January 21, 2026. The Company has paid uninterrupted dividends on its common stock since 1895.
Altria Group today announced that our Board of Directors declared a regular quarterly dividend of $1.06 per share, payable on January 9, 2026 to shareholders of record as of December 26, 2025. The ex-dividend date is December 26, 2025.
VIDEO: Daily Dividend Report: BMY,SYK,MDLZ,CL,MO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: BMY,SYK,MDLZ,CL,MO

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $543.5 million dollar inflow -- that's a 9.8% increase week over week in outstanding units (from 62,900,000 to 69,050,000). Among the largest underlying components of DLN, in trading today Altria Group Inc (Symbol: MO) is up about 0.1%, Southern Company (Symbol: SO) is up about 1.5%, and NextEra Energy Inc (Symbol: NEE) is up by about 1.3%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average:
Looking at the chart above, DLN's low point in its 52 week range is $69.32 per share, with $88.59 as the 52 week high point — that compares with a last trade of $88.56. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
STI market cap history
HFWA Split History
GNPX Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DLN, MO, SO, NEE: ETF Inflow Alert

Key Points
Cigarette maker Altria has increased its annual dividend for 56 consecutive years.
It has used its pricing power to offset declining volume due to fewer adult smokers.
With a forward P/E ratio of around 10.7, Altria is trading at a bargain by most standards.
Dividends are an effective way to generate value from your stocks without relying solely on their stock price performance. A dividend plus stock price growth is obviously ideal, but it's nice knowing you have guaranteed dividend income in the works regardless of how a stock performs.
One dividend stock that has been a staple on the market for decades is tobacco giant Altria Group (NYSE: MO). With 56 consecutive years of dividend increases (and 60 total in that span), Altria is a dividend king and one of the highest-yielding stocks on the market.
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With a 7% dividend yield (as of Dec. 8), Altria's stock could be appealing to investors seeking income. However, does that alone make it a no-brainer heading into 2026? Let's take a look.
Using its pricing power to its advantage
Altria owns well-known tobacco brands such as Marlboro, Black & Mild, Copenhagen, Skoal, Virginia Slims, and others. These companies span from traditional cigarettes to cigars to smokeless tobacco to e-vapor, and in many cases, Altria holds a strong position in these categories.
One knock on Altria's business in recent years has been the declining smoking rate of American adults, which, in turn, has translated to declining volume for Altria. Smoking rates among adults have fallen from around 42% in 1965 to just over 11% in 2022.
Luckily, Altria has been able to offset declining volume with its pricing power. Tobacco consumers, for better or worse, don't typically stop using tobacco whenever prices are increased. In some instances, they'll switch to a cheaper brand, but in a lot of cases, they'll just deal with the increase and buy their preferred brand. This is how Altria's financials have remained stable even while its volume has declined.
Altria isn't a company that's going to experience high revenue growth, but its revenue has remained fairly stable over the years. Simply raising prices isn't a productive long-term strategy, but it has bought, and will continue to buy, Altria time while it gets a viable non-tobacco option.
How safe is Altria's dividend?
There's no doubt that Altria's selling point is its dividend. However, if the company continues to lose volume and can't fully offset it with its pricing power, there are rightly questions about the dividend's stability. The good news is that the dividend doesn't seem to be in jeopardy.
Altria aims for a payout ratio of around 80% of its adjusted earnings per share (EPS). The adjusted EPS excludes one-time expenses and better reflects its day-to-day earnings from operations. Below are Altria's past four payout ratios compared to its adjusted EPS:
Q3 2025
$1.06
$1.45
73.1%
Q2 2025
$1.02
$1.44
70.8%
Q1 2025
$1.02
$1.23
82.9%
Q4 2024
$1.02
$1.29
79.1%
As with the stock price itself, past performance doesn't guarantee future performance, but I don't see a situation where Altria's dividend will be in legitimate jeopardy in the foreseeable future. Knowing that the dividend is what attracts investors, I'd imagine the company would cut expenses elsewhere before it ever slashed its dividend.
Altria's stock is trading at a bargain right now
I wouldn't call Altria's stock a no-brainer for long-term investors, because there are legitimate concerns about the traditional cigarette business. However, at its current valuation, Altria seems a bargain for investors willing to bet on its ability to overcome the declining smoking "problem."
Altria shares are trading around 10.7 times its projected earnings for the next 12 months, which is cheap by most standards. That doesn't guarantee the stock price will perform well, but it does give the stock more upside than if it were priced at more of a premium.
If you're looking for a stock that will beat the market year in and year out or produce double-digit percentage revenue growth, Altria isn't the stock for you. However, if you're looking for above-average dividend income from a company that has so far stood the test of time, Altria is a good go-to.
Should you invest $1,000 in Altria Group right now?
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is This Ultra-High-Yield Dividend Stock a No-Brainer Heading Into 2026?

Key Points
Altria continues to build on its multidecade streak of dividend hikes even as its cigarette business fades.
The stock's yield is high due to Altria's slow growth and tepid share price performance, not financial risk.
Altria's ability to sustain its payouts will depend on whether it can keep pace with its competitors as they pivot away from traditional cigarettes.
Tobacco giant Altria Group (NYSE: MO) has done quite well in 2025. The stock is up by roughly 10% since January, or 16% if you include dividends. That hasn't been the norm in recent years: After various up and down periods, Altria is close to flat over the past decade, dramatically underperforming the broader market.
Slow growth in sales is primarily to blame. The Marlboro maker's customer base is steadily shrinking as fewer people smoke cigarettes over the years. Because of this, those who choose to own the tobacco stock likely picked it for its dividend. Altria is not only a Dividend King -- a company with at least 50 consecutive annual dividend increases -- but also yields a whopping 7.3% at its recent share price.
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The sustainability of that dividend is likely on the minds of shareholders as we head into 2026.
Here is whether you can continue to count on Altria to deliver that dividend, as well as what the company's most pressing matter is next year.
Is Altria's dividend safe?
High dividend yields can often signal trouble. Companies set their payout amounts, but the yield is also a function of the share price. In other words, the stock market has a say in determining the yield. When it's very high, there's often an inauspicious reason.
In Altria's case, the company's core cigarette business is fading, so there's not much top-line growth. The stock price is discounted accordingly, but those lower share prices do compensate investors by providing a higher yield. In other words, investors buy the stock for the reliable dividend income, not with the expectation of strong share price appreciation.
Financially speaking, Altria is rock solid. The company regularly raises cigarette prices to offset its steadily shrinking sales volumes, a strategy that has allowed it to keep making small annual increases to its dividend. This playbook has been effective for decades, and analysts expect Altria to grow its earnings by 3% annually over the next three to five years.
The dividend payout ratio is 82% of 2025 earnings estimates, and Altria still holds a multibillion-dollar stake in Anheuser-Busch InBev that it could liquidate for cash if it needed to. No, Altria stock won't deliver much in the way of returns beyond its dividend, but you can continue to count on it.
The one key thing investors must watch next year
The further you gaze into the future, the riskier an investment Altria becomes. The tobacco industry is evolving gradually away from cigarettes and toward smoke-free nicotine products like electronic vapes, heat-not-burn tobacco devices, and oral nicotine salt pouches.
The industry's other major players have made meaningful progress in incorporating these newer products into their businesses. In their most recent earnings reports, next-generation products comprised 41% of Philip Morris International's net sales and 18.2% of British American Tobacco's.
Altria, by contrast, still relies heavily on cigarettes and cigars, which accounted for more than 88% of its net revenue in the third quarter. The company is working to grow its smoke-free offerings, but it risks losing market share over time if it doesn't start making up some ground.
So shareholders should go ahead and enjoy those dividends in 2026. However, long-term investors will want to closely monitor the progress of Altria's ongoing transition in focus away from its core cigarette business.
Should you invest $1,000 in Altria Group right now?
Before you buy stock in Altria Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
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*Stock Advisor returns as of December 8, 2025
Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Altria's 7.3% Yield Safe? This 1 Thing Matters Most in 2026

Altria Group, Inc. (MO) is trading at one of the most attractive valuations in the tobacco space, with a forward 12-month price-to-earnings (P/E) ratio of 10.46. This is below the Tobacco industry’s average of 13.89, the Consumer Staples sector’s 16.02 and the S&P 500’s 23.46. Even compared with major peers, Philip Morris International Inc. (PM), Turning Point Brands, Inc. (TPB) and British American Tobacco p.l.c. (BTI), which trade at 18.12, 24.78 and 11.82, respectively, MO remains discounted.
With such a clear valuation gap, investors must decide whether this marks a buying opportunity or supports a hold strategy
MO P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
MO Stock’s Performance
Altria’s one-month share performance shows steady momentum against key competitors. MO rose 1.1% over the period, edging past Turning Point Brands, which gained 0.9% and significantly outperforming Philip Morris, which declined 3%. British American Tobacco delivered the strongest peer performance, advancing 3.4%.
Looking beyond competitors, the Consumer Staples sector and the industry slipped 0.3% and 1.2%, respectively, while the S&P 500 delivered a modest 0.8% gain. This breakdown highlights Altria’s balanced positioning, outpacing several peers and broader benchmarks while maintaining solid short-term momentum.
MO Stock Past Month Performance
Image Source: Zacks Investment Research
So far, Altria’s appealing valuation and steady stock performance have helped explain why the stock continues to draw investor interest. But to understand what is supporting this momentum and whether this can be sustained over the long run, it’s important to look beyond the market action. A closer look at Altria’s fundamentals, including earnings stability, product portfolio and strategic growth efforts, provides a clearer picture of its overall strength.
Altria: Strength Built on Strategy and Stability
Altria’s financial fundamentals remain supported by resilient earnings growth and strong profitability. In the third quarter of 2025, adjusted earnings per share (EPS) rose 3.6% to $1.45, while year-to-date EPS increased 5.9%, driven by higher adjusted operating companies income (“OCI”) and a lower share count. The smokeable products segment maintained impressive adjusted OCI margins of 64.4%, reflecting effective pricing strategies.
The company’s smokeable business, anchored by Marlboro, continues to deliver stable profit despite industry volume declines. Marlboro expanded its premium-segment share to 59.6%, reinforcing Altria’s pricing power and long-term brand strength. At the same time, Altria met rising price sensitivity with its Basic brand, which gained solid share without taking business away from Marlboro. This balanced strategy helps the company compete at different price points while still protecting overall profitability.
Altria’s oral tobacco portfolio is showing an improving quality of growth, with on! playing a larger role in long-term strategy. Despite third-quarter shipment volatility caused by competitor promotions, on! reported volume grew nearly 1%. Segment adjusted OCI margins expanded 2.4 percentage points to 69.2%. The recent launch of on! PLUS, with premium flavors and enhanced comfort, positions Altria to regain share and strengthen its presence in the fast-growing nicotine pouch category.
Strategically, Altria strengthened the long-term outlook through its collaboration with KT&G, targeting international modern oral expansion and U.S. non-nicotine adjacencies. The partnership also explores operational efficiencies in traditional tobacco and potential expansion of the on! portfolio into global markets. Combined with consistent cash returns, including Altria’s 60th dividend increase in 56 years, these initiatives help reinforce its overall stability and long-term growth positioning.
However, Altria continues to contend with meaningful volume pressures across both smokeable and oral categories. Cigarette shipment volumes fell 8.2% in the third quarter and 10.6% year to date, reflecting ongoing macroeconomic strain on consumers and the rapid growth of flavored disposable e-vapor products. These unregulated products draw volume away from the legal market and add further uncertainty to the competitive environment.
How Are Estimates Stacking Up for MO?
The Zacks Consensus Estimate for Altria’s earnings has seen mixed revisions in recent weeks, reflecting a balanced but steady outlook. Over the past 30 days, the 2025 EPS estimate has inched up 1 cent to $5.44, while the 2026 estimate has dipped 1 cent to $5.56. Even with these modest adjustments, Altria is still projected to deliver solid earnings growth, up 6.3% in 2025 and 2.3% in 2026.
Image Source: Zacks Investment Research
Takeaways for Altria Investors
Altria’s combination of attractive valuation, steady earnings growth and a reliable dividend underpins its appeal to value and income-focused investors. Strong pricing power, brand leadership and progress in the oral nicotine segment add further stability. That said, ongoing volume declines and competitive pressure from disposable e-vapor products pose persistent risks. With earnings estimates showing modest but positive momentum, Altria offers disciplined long-term potential, though investors should remain mindful of evolving category headwinds and regulatory developments. Currently, the stock appears better suited for holding rather than aggressive buying and carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Altria Stock Trading at a Discount to Industry: Buy or Hold?

Altria Group, Inc.’s (MO) third-quarter of 2025 produced an unusual pairing in its smokeable business: cigarette shipments continued to shrink, yet profitability moved higher. After accounting for timing factors such as trade inventory adjustments and calendar shifts, domestic cigarette volumes were down roughly 9%, reflecting ongoing pressure on the combustible category. Even so, the smokeable segment’s adjusted margin climbed to 64.4%, extending its steady upward trend.
Price realization was the primary driver. Higher list prices offset the volume drag and helped lift adjusted operating income to $2,956 million for the quarter. This pricing strategy leans heavily on Marlboro’s stability in the premium tier, where it increased share to 59.6%, a 0.3-point gain from last year. A strong premium base gives the company room to take pricing without significant pushback from loyal adult smokers.
Margin expansion was also supported by lower per-unit settlement charges and careful control of operating expenses. These savings helped offset the effects of higher promotions and more smokers moving to discount brands. Altria’s data-focused pricing and product-mix strategies allowed it to maintain strong profitability by adjusting prices, managing mix and moderating promotions where needed.
Ultimately, the quarter highlights how Altria continues to extract more profit from fewer cigarette units. Through a combination of pricing power, premium-brand durability and operational efficiency, the smokeable segment delivered record margins despite clear and accelerating volume headwinds.
How MO Stacks Up Against PM and TPB
Philip Morris International Inc. (PM) delivered clear margin expansion in the third quarter of 2025 as pricing strength in combustibles and rapid scaling of smoke-free products offset cigarette volume declines. Primarily driven by high single-digit pricing and favorable market mix, Philip Morris reported combustible net revenue growth of 4.3% and gross profit growth of 7.7%. Even with a 3.2% decline in cigarette shipments, Philip Morris maintained a stable category share and increased Marlboro’s global share to its highest level since 2008.
Turning Point Brands, Inc. (TPB) posted strong profitability improvement in the third quarter of 2025, with gross profit rising 39.7% year over year to $70.4 million, supported by robust growth in its Stoker’s segment. Driven by accelerating Modern Oral adoption alongside steady MST and loose-leaf performance, Turning Point Brands reported an 80.8% surge in Stoker’s net sales, while segment gross margin expanded 440 basis points to 60.2%. This demonstrates Turning Point Brands’ ability to expand margins through favorable mix shift and strong category fundamentals.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 0.7% in the past month against the industry’s decline of 1.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 10.44X, down from the industry’s average of 13.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2025 earnings per share has inched up 1 cent in the past 30 days to $5.44, while the same for 2026 has slipped 1 cent to $5.56.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MO Expands Smokeable Margins to 64% as Cigarette Volumes Fall 9%

Key Points
Altria's impressive 7.2% dividend yield is supported by a history of consistent dividend increases.
Altria's most significant business is selling smokable tobacco, which accounts for nearly 90% of its revenue.
The company's cigarette volumes have been in decline for years.
If you don't look under the hood, Altria (NYSE: MO) appears to be a very compelling investment. It operates in the consumer staples sector, it has a very large 7.2% yield, and the dividend has been increased regularly for years.
Before you jump on the stock, thinking you've set yourself up for a lifetime of reliable dividend income, lift up the covers and take a closer look at the business that backs the dividend.
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Here's why you might not like what you see.
Not your typical consumer staple item
Consumer staples companies produce products that are purchased regularly, regardless of the market or economic environment, and typically have a modest cost. Brand loyalty is often a significant factor in this space as well. All these factors work in favor of Altria's most important offering: Smokable tobacco products, such as cigarettes. Taken as a group, smokeable tobacco accounts for a huge 88% of the company's top line.
Most consumer staples products are necessity items, like food, toilet paper, and toothpaste. You most certainly need to buy these items regularly. Tobacco isn't a necessity. It is a consumer staple largely because of the addictive nature of nicotine, which keeps buyers coming back for more. Unlike makers of deodorant and similar products, tobacco stocks are really sin stocks. That's important because Altria's smokable products group has been in decline for years as cigarette smoking has increasingly fallen out of favor with consumers.
In the third quarter of 2025, volume in the business dropped 8%. Through the first nine months of the year, volume was off by 10.3%. In 2024, volumes declined 10%. In 2023, volumes fell 9.6%. That is a terrible trend that should be a warning sign to anyone who owns or is thinking about owning tobacco-focused Altria. Most investors would be running for the hills if this were a company that produced food.
The numbers add up, but only because of Altria's buybacks
Given that backdrop, it should come as little surprise that the top line of Altria's income statement fell 3% in Q3 2025, while it was down roughly 3.4% through the first nine months of the year. What might be confusing is that the company's adjusted earnings rose 3.6% and 5.9%, respectively, over those same time periods.
There are two things to monitor here. First, the volume decline didn't lead to as material a revenue decline as you might expect. That's because the addictive nature of nicotine has allowed Altria and its peers to jack up the price of their smokes on a regular basis. For a long time, the additional revenue from price hikes more than offset the effect from volume declines, but that is now ancient history. Price hikes now appear to be a part of the volume problem.
The second issue to consider is earnings, which rose despite the drop on the top line. That was largely thanks to the company's stock buybacks. In Q3 2025, Altria repurchased 1.9 million shares, bringing the total to 12.3 million shares over the first nine months of the year. Year over year, the company's share count fell 1.4% in Q3 and 2.4% through the first three quarters.
To be fair, the company's cost-cutting efforts have also helped support the bottom line. However, the big-picture story remains the same. Altria's most significant business is under severe pressure, which is having an increasingly negative effect on the company's financial results. Since the volume decline in smokable products is unlikely to change direction, buying Altria is, effectively, buying a business that's in decline.
The future could be brighter than it seems today
Despite a lofty yield and strong dividend history, most conservative dividend investors will probably be better off avoiding Altria. In fact, if you buy Altria, you are really betting that management can milk the dying smokable tobacco business long enough to fund the buildout of divisions capable of offsetting the ongoing declines.
That might happen, but so far, Altria's efforts have been less than impressive, with failed efforts in vaping and marijuana that cost investors billions in write-offs. The risk-reward balance for this high-yield stock is currently tilted in the wrong direction for long-term investors.
Should you invest $1,000 in Altria Group right now?
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Could Buying High-Yield Altria Today Set You Up for Life?

Key Points
Altria Group trades at a low forward multiple and sports a high dividend, but this cheap stock could keep on getting cheaper.
The cigarette maker continues to struggle to make the same "smokefree" pivot that some of its publicly-traded rivals are successfully executing.
The Marlboro maker could eventually become deep value, but for now consider it best to wait things out.
Take one quick look at the stock on a screener, and you may think "undervalued" is an apt description for Altria Group (NYSE: MO).
The company, which sells Marlboro cigarettes in the United States, has a low forward price-to-earnings ratio (P/E) and a high forward dividend yield and looks very cheap today. But don't underestimate how much "cheaper" shares could get in the months ahead.
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It all has to do with Altria Group's "smoke-free strategy" -- or rather its lack of success so far with such a plan, to be blunt. Concerns remain high that this cigarette company has become at best a "cigar butt" investment (a Warren Buffett term for a troubled-asset stock) and at worst a value trap.
Altria inched up after a post-earnings plunge, but proceed with caution
Late last month, the company's shares plunged after a quarterly earnings release. Even as the results slightly beat sell-side analyst estimates, investors reacted negatively to news of Marlboro-branded shipment volumes falling by 11.7%.
That figure is higher than the reported volume declines across all of Altria's cigarette brands, which suggests that smokers may be switching to lower-priced, lower-margin brands -- if not making the switch to smokeless tobacco and nicotine alternatives. If that's not bad enough, Altria also reported relatively lackluster results for its oral tobacco products.
That segment includes legacy smokeless tobacco brands like Skoal and Copenhagen, as well as the company's on! nicotine pouch. During the quarter, shipment volumes for Skoal and Copenhagen fell 17.1% and 12.4%, respectively, while on! shipment volumes increased by only 0.7%.
Alongside this, investors also reacted negatively to Altria's updates to its guidance, perceived as weak relative to expectations. Given these many negatives, it's not surprising that shares tanked by nearly 8% following the earnings release. The stock may be inching higher once again but could remain at risk of further volatility down the road.
Wait for lower prices before buying
Currently, Altria Group trades for around 10.4 times forward earnings. This forward P/E is well below that of Philip Morris International (NYSE: PM), at 18.5 times forward earnings, so it may make Altria seem very cheap right now.
However, Philip Morris International, Altria's former corporate sibling, has been far more successful executing on its smoke-free strategy with its Zyn tobacco-free nicotine pouches -- 41% of Philp Morris revenue now comes from alternative products. So it makes much more sense for this stock to trade at such a premium valuation.
British American Tobacco (NYSE: BTI), parent company of R.J. Reynolds and the maker of cigarette brands including Camel and Newport, trades at a higher valuation than Altria, at around 11.5 times forward earnings. However, with British American generating 18.2% of its revenue from alternative products, versus just 14% for Altria, it has arguably made more progress with this pivot as well.
Hence, I wouldn't assume that Altria Group will all of a sudden experience valuation expansion, pushing it back to be on par with these competitors. Instead, shares could keep pulling back if concerns about cigarette sales volumes and alternative-product growth persist. Remember, just a few years ago, Altria was trading at a P/E in the high single digits. You may want to wait for this to happen again before declaring the stock too cheap to avoid.
Otherwise, wait for major change to happen
For now, Altria could be a value trap and a yield trap. Its forward dividend yield of over 7% may seem tempting, but what if the stock declines further, falling by double digits and outweighing the dividend payouts?
Waiting for this cheap stock to become even cheaper may be the safest option, but something else, if it emerges, could signal that it's time to buy. I'm talking about the trends mentioned above either reversing, or the company making a game-changing move related to diversification into alternative products.
For instance, there could be a major breakthrough resulting from Altria's collaboration with South Korean tobacco company KT&G to produce nicotine pouches. Or, perhaps from Altria engaging in mergers and acquisitions that increase its smoke-free exposure.
In short, either wait for Altria's valuation to revisit historic lows -- or for signs of major change -- before making this blue chip stock and Dividend King a buy.
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Altria Group Too Cheap to Ignore at Today's Price?

Altria Group, Inc. (MO) and Philip Morris International Inc. (PM) stand as two of the most influential players in the global tobacco landscape, each commanding strong brand portfolios and pursuing distinct strategic directions. Altria, focused on the U.S. market, continues to generate substantial revenues from the flagship Marlboro cigarettes while broadening its presence in smoke-free and oral nicotine products. In contrast, Philip Morris has become a global leader in reduced-risk innovation, driven by its heated tobacco platform IQOS and an expanding portfolio of nicotine alternatives.
The tobacco industry as a whole is undergoing a significant transformation, shaped by declining traditional cigarette use, tightening regulatory pressures and rising consumer interest in cleaner, smoke-free technologies. Against this backdrop, both MO and PM are accelerating innovation and restructuring their business models to remain competitive. As investors weigh stability against growth-driven potential, the debate continues over which company is best positioned to lead the industry’s evolving future.
The Case for Altria
Altria maintains a dominant position in the U.S. tobacco market, supported by a 45.4% cigarette retail share and Marlboro’s 59.6% leadership in the premium segment in the third quarter of 2025. Despite industry volume pressures, the smokeable segment achieved a 64.4% adjusted operating companies income margin, demonstrating strong pricing power and lower per-unit settlement costs. These fundamentals underpin a resilient earnings base as Altria navigates category declines and shifting adult-consumer behaviors.
Altria’s strategy focuses on reinforcing core profitability while accelerating growth across oral nicotine, heated tobacco and e-vapor platforms. on! shipments reached 133.6 million cans year to date, supported by steady retail takeaway despite heightened competitive discounting. The launch of on! PLUS and Horizon’s FDA filings for Ploom broaden Altria’s smoke-free portfolio, positioning it to meet rising demand for cleaner, well-regulated nicotine alternatives.
The company also reaffirmed its commitment to consistent shareholder value creation in the third quarter. In August 2025, management raised the regular quarterly dividend by 3.9% to $1.06 per share, Altria’s 60th increase in 56 years. The expansion of the share repurchase program to $2 billion through 2026, up from $1 billion, further reflects confidence in earnings stability and long-term financial strength.
Nonetheless, Altria continues to face structural challenges. Domestic cigarette shipment volumes fell 8.2% in the quarter and Marlboro’s total-category share declined to 40.4%, down 1.2 share points year over year. In oral tobacco, Copenhagen and Skoal declined amid intensifying nicotine-pouch competition. Broader marketplace headwinds, evolving consumer preferences and shifting category dynamics continue to pressure volumes, underscoring the importance of sustained innovation and effective execution across smoke-free platforms.
The Case for Philip Morris
Philip Morris’ growth remains firmly anchored in the smoke-free transformation, which continues to reshape its earnings profile. In the third quarter of 2025, smoke-free products accounted for 41% of total net revenues and 42% of gross profit. Shipments advanced 16.6% year over year, led by IQOS, ZYN and VEEV, driving record quarterly smoke-free gross profit of $3.1 billion and reinforcing the company’s long-term profitability trajectory.
IQOS, ZYN and VEEV delivered robust, broad-based growth across major markets. Shipments of IQOS climbed 15.5% to 40.8 billion units in the quarter, sustaining Philip Morris’ 76% global share of heated tobacco units. ZYN shipments surged 37% in the United States to 205 million cans and more than doubled internationally, excluding Nordic countries. VEEV volumes also more than doubled year to date, maintaining its number-one closed-pod position across eight markets.
Operational excellence and disciplined cost management further fueled earnings momentum. Adjusted operating income rose 12.4% to $4.7 billion, with margins expanding 120 basis points to 43.1%. Adjusted EPS increased 17.3% to $2.24, supported by strong IQOS and ZYN performance, resilient combustibles and a favorable tax environment. The company remains on track to deliver $2 billion in cost savings by 2026 and raised full-year EPS growth guidance to 13.5-15.1%.
However, pressure persists within the combustible segment. Cigarette shipment volumes declined 3.2% in the third quarter, partially offset by high-single-digit pricing that lifted net revenues 4.3%. Gross profit increased 7.7%, reflecting pricing strength and cost discipline, but long-term declines in smoking prevalence and regulatory headwinds continue to weigh on the category. Ongoing innovation in smoke-free products remains critical to sustaining growth and offsetting these structural challenges.
How Does the Zacks Consensus Estimate Compare for MO & PM?
The Zacks Consensus Estimate for Altria’s 2025 and 2026 EPS indicates a year-over-year increase of around 6.3% and 2.3%, respectively. The consensus estimate for MO’s 2025 EPS has inched up 1 cent in the past 30 days to $5.44, while the same for 2026 has slipped 1 cent to $5.56.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Philip Morris for 2025 and 2026 EPS implies year-over-year growth of 14.3% and 11.4%, respectively. The consensus estimate for 2025 EPS has inched up 1 cent in the past 30 days to $7.51, while the same for 2026 has remained unchanged at $8.36.
Image Source: Zacks Investment Research
MO & PM: A Look at Past-Year Stock Performance
Over the past year, shares of Altria have gained 9.3%, while Philip Morris has delivered a stronger 22.7% advance. Currently, MO trades at $58.69, about 14.4% below its 52-week high. PM, at $156.49, sits roughly 16.2% below its peak.
Image Source: Zacks Investment Research
MO vs. PM: A Peek Into Stock Valuation
Altria is trading at a forward 12-month price-to-earnings (P/E) ratio of 10.57, below its one-year median of 10.81. Meanwhile, Philip Morris’ forward P/E ratio stands at 18.9, also below its median of 20.59.
Image Source: Zacks Investment Research
MO vs. PM: Which Stock Looks More Promising Now?
Among the leading tobacco firms, Philip Morris stands out as the stronger growth story. Its aggressive shift toward smoke-free products, global scale and disciplined cost strategy are driving sustained earnings and margin expansion. Altria, with its U.S.-centric portfolio, continues to deliver dependable cash flows and shareholder returns. For investors focused on long-term growth and industry transformation, PM is better positioned, while Altria offers stability and consistent performance.
Both MO and PM currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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