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 выглядит как зрелый денежный бизнес с сильной операционной рентабельностью, но с заметными балансовыми ограничениями. По мультипликаторам картина неоднородная: P/E ниже медианы отрасли, а P/FCF тоже выглядит умеренным, что поддерживает оценку, однако P/S существенно выше отраслевого уровня и намекает на дороговизну относительно выручки. Динамика P/E в последние периоды была волатильной, но в целом не выглядит как устойчивое удешевление при улучшении качества, поэтому этот сигнал скорее нейтральный. Маржинальность очень сильная: gross margin, operating margin и net profit margin существенно выше медианы, что подтверждает высокую ценовую силу и устойчивость бизнеса. При этом все три маржи в годовой динамике снизились от более высоких уровней, поэтому качество остаётся высоким, но тренд уже не ускоряется. ROA и ROI также заметно выше отрасли, однако их снижение по годам указывает на постепенное ослабление эффективности использования активов и капитала. Выручка, прибыль и операционная прибыль остаются крупными и в целом стабильными, но без явного роста, что ограничивает потенциал переоценки. Долговая нагрузка выглядит чувствительной: long-term debt очень велик, total liabilities высоки, а собственный капитал отрицательный, что делает баланс уязвимым и повышает риск для оценки. Ликвидность слабая, поскольку current ratio и quick ratio ниже комфортных уровней и хуже отраслевой медианы, хотя cash on hand остаётся значимым буфером. Дивидендная доходность по последним данным снизилась до нуля в текущем срезе, а ранее держалась на умеренном уровне, поэтому дивидендный аргумент сейчас не усиливает оценку. В сумме фундаментал поддерживает компанию как качественного генератора прибыли и кэша, но слабый баланс, высокая выручка-ориентированная оценка и отсутствие ускорения роста ограничивают апсайд. Для инвестора это скорее история стабильности и доходности, чем сильного роста, поэтому целесообразна лишь умеренная консервативная корректировка прогноза вниз.

Altria Group, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Средний индекс, незначительно упал. Рынок на стороне быков.

Medium index, slightly down. The market is on the bulls' side.

Средний индекс, незначительно вырос. Рынок не поддерживает медведей.

Medium index, slightly up. The market does not support the bears.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Слабый индекс, значительно упал. Увеличился отток средств из шортов.

Weak index, significantly down. The outflow of funds from shorts has increased.

Сильная маржа и прибыльность MO сочетаются со слабой ликвидностью, высоким долгом и дорогим P/S, поэтому фундаментал поддерживает лишь умеренно консервативную оценку.

An updated edition of the March 5, 2026, article.
Investing is often viewed through the lens of financial returns, but some sectors of the market raise questions that go beyond balance sheets and earnings reports. Among these are "sin stocks" —companies that generate revenues from products or services that some people consider ethically controversial. Despite the moral debate surrounding them, sin stocks have long attracted investors seeking stable cash flows, resilient demand and attractive shareholder returns.
Sin stocks refer to shares of companies operating in industries that are often considered socially or morally controversial, such as alcohol, tobacco, gambling, firearms and cannabis. Despite the ethical debate surrounding them, these businesses tend to generate steady demand and strong cash flows, making them a notable segment of the equity market.
The sin stock market functions much like any other segment of the equity market. These companies are publicly traded, generate revenues, report earnings and compete for market share.
Major players in these industries include tobacco giant Turning Point Brands TPB, leading alcohol producer The Boston Beer Company Inc. SAM, casino operators and companies dealing in cannabis. Because their products often have loyal consumer bases, these companies tend to maintain relatively stable sales even amid economic downturns.
For decades, "sin stocks" have occupied a unique corner of the investment world. While they often spark ethical debates, these companies have also built a reputation for generating resilient cash flows, rewarding shareholders and weathering economic downturns better than many traditional businesses.
As Environmental, Social and Governance (ESG) investing gains traction and societal attitudes continue to evolve, investors are once again asking a critical question: do sin stocks still deserve a place in a modern portfolio?
Why Do Investors Buy Sin Stocks?
The appeal of sin stocks has little to do with controversy and everything to do with business fundamentals. Many sin industries benefit from relatively stable demand, regardless of economic conditions. Consumers tend to continue purchasing cigarettes, alcoholic beverages and gambling services even during recessions. This defensive quality can help protect revenues when discretionary spending declines.
Companies operating in the tobacco and alcohol markets often possess significant pricing power. Established brands can increase prices without experiencing a proportional decline in demand. This ability to pass costs on to consumers helps support profitability even during inflationary periods.
Another reason investors choose sin stocks is their high profitability and dividend potential. Many sin stocks operate in mature industries with predictable cash flows and limited capital expenditure requirements. As a result, companies frequently return substantial capital to shareholders through dividend payments, share repurchase programs and special distributions. Income-focused investors often find these businesses particularly attractive.
A growing number of institutional investors, pension funds and ESG-focused portfolios exclude sin stocks from their investment universe. This reduced participation can sometimes lead to lower valuations, creating opportunities for investors willing to own these companies.
Trends in Sin Stock Sectors
Sin stock sectors are evolving as consumer behavior, technology and regulations reshape traditional industries, such as alcohol, tobacco and gambling. Tobacco companies remain among the most prominent examples of sin stock investing. Although smoking rates have declined across many developed markets, industry leaders have maintained profitability through price increases, international expansion and investments in reduced-risk products, such as heated tobacco and nicotine pouches.
Alcohol producers benefit from strong brand loyalty and recurring consumer demand. Global spirits, beer and wine companies have increasingly focused on premium products, helping improve margins and drive revenue growth. Premiumization remains one of the most important trends shaping the industry, as consumers increasingly choose higher-quality products over larger quantities.
The gambling industry has undergone a significant transformation in the past decade. The rise of online casinos, mobile betting apps and legalized sports wagering has opened growth avenues for operators. Technology has fundamentally changed how consumers engage with gambling services, making the industry more accessible and scalable than ever before.
Cannabis is often viewed as the emerging segment of the sin stock universe. As legalization expands across various jurisdictions, companies are seeking to build national and global brands.
While the sector offers significant growth potential, it also presents elevated risks due to regulatory uncertainty, pricing pressures, limited profitability and capital constraints. For many investors, cannabis remains a high-risk, high-reward opportunity.
Regulatory changes and higher “sin taxes” remain a defining factor for these industries, influencing profitability and stock performance. Governments often impose higher taxes on tobacco, alcohol and gaming to discourage consumption while raising revenues. Overall, while the sin stock sectors face regulatory scrutiny, innovation, digital expansion and shifting consumer preferences continue to shape their long-term growth prospects.
If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Monarch Casino & Resort, Inc. MCRI, Churchill Downs Incorporated CHDN, and Altria Group, Inc. MO.
Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
Monarch Casino presents a compelling long-term investment case, supported by its premium regional resort strategy, disciplined execution and focus on operational excellence. The company continues to strengthen its competitive position in key markets by enhancing guest experiences through property upgrades, modern gaming amenities and high-quality hospitality offerings. Management remains focused on targeted marketing, cost discipline and strategic reinvestment in its flagship properties to attract higher-value customers and increase spending per visit.
Its concentrated portfolio provides greater control over service quality, capital allocation and expense management. Backed by consistent property enhancements and a focus on premium experiences, this Zacks Rank #1 (Strong Buy) company appears well-positioned to sustain visitation growth, support margin expansion and generate stable cash flows over the long term. You can see the complete list of today’s Zacks #1 Rank stocks here.
Churchill Downs has been strengthening its long-term growth profile through a combination of iconic racing assets, expanding Historical Racing Machine (HRM) operations and disciplined capital allocation. Management highlighted record second-quarter revenues and adjusted EBITDA, supported by strong Kentucky Derby wagering, premium hospitality demand and solid performance across its gaming portfolio.
The company is also benefiting from growth initiatives, including HRM expansions in Kentucky and Virginia, a new seven-year NBC media agreement beginning in 2026 and ongoing investments in the Churchill Downs racetrack. Robust free cash flow generation, aggressive share repurchases and anticipated tax savings further enhance shareholder value, positioning the Zacks Rank #2 (Buy) company for sustained earnings growth and margin expansion.
Altria offers an attractive investment proposition, supported by its strong pricing power, resilient cash flows and shareholder-friendly capital allocation strategy. The company continues to offset cigarette volume declines through effective pricing actions across its smokeable and oral tobacco businesses, driving margin expansion and earnings growth.
Altria is also advancing its smoke-free transformation through the expansion of on! PLUS and investments in reduced-risk products, positioning itself to benefit from evolving consumer preferences. Robust free cash flow generation supports its industry-leading dividend yield and ongoing share repurchases. The company currently has a Zacks Rank #2.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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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.

Sin Stocks Under the Microscope: Risks, Returns & Reality

Altria (MO) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, MO broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, MO has gained 6%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
Looking at MO's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 5 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch MO for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Altria (MO) Just Overtook the 20-Day Moving Average

Mama's Creations, Inc. MAMA is likely to witness top-line growth when it reports first-quarter fiscal 2027 earnings on June 8, 2026. The Zacks Consensus Estimate for revenues is pegged at $51.8 million, indicating an increase of 46.9% from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged over the past 30 days at 3 cents a share, which is in line with the year-ago period. MAMA has a trailing four-quarter earnings surprise of 125%, on average.
Factors Likely to Influence MAMA’s Upcoming Results
Mama’s Creations is likely to have benefited from continued distribution gains and deeper penetration across key retail accounts in the first quarter of fiscal 2027. The company entered the quarter with recent placement wins at major national retailers, including Walmart, Target and Food Lion, while management remained focused on expanding products carried by existing customers. Growing shelf presence, broader geographic reach and increasing branded placements are expected to have supported sales momentum.
Another key driver is expected to be the ongoing integration of the Crown 1 acquisition. Management has highlighted progress in centralizing procurement and logistics, optimizing production across its manufacturing network and realizing operational synergies. Cross-selling opportunities between MAMA’s legacy customer base and Crown 1’s premium accounts have also started to gain traction, creating additional avenues for growth. These efforts support the company’s strategy of becoming a one-stop-shop provider of fresh prepared foods.
Mama’s Creations is also benefiting from favorable consumer trends, with shoppers increasingly seeking fresh, convenient and protein-focused meal solutions. Product innovation, including new prepared-food offerings and No Antibiotics Ever chicken products, along with expanded marketing and promotional initiatives, is likely to have supported customer acquisition and product velocities.
On the downside, the quarter may have been affected by inflationary pressures in key commodity and freight markets. Although management has implemented pricing actions, commodity contracts and operational initiatives to offset these headwinds, cost inflation and ongoing optimization efforts related to the Crown 1 integration may have created some near-term pressure on profitability.
Q1 Earnings Whispers for MAMA
Our proven model doesn’t conclusively predict an earnings beat for Mama's Creations this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Mama's Creations currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Altria Group, Inc. MO currently has an Earnings ESP of +2.72% and a Zacks Rank of 2. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $5.35 billion, indicating a 1.1% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Altria’s earnings is pegged at $1.48 per share, implying 2.8% growth from the year-ago quarter. MO delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Darling Ingredients DAR currently has an Earnings ESP of +22.16% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $1.73 billion, which indicates an increase of 17.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Darling Ingredients’ upcoming quarter’s earnings per share is pegged at $1.20, calling for a substantial jump from the year-ago period’s figure of 9 cents. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Albertsons Companies ACI currently has an Earnings ESP of +14.25% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $24.82 billion, which indicates a 0.3% dip from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Albertsons’ upcoming quarter’s EPS is pegged at 55 cents, which is in line with the year-ago period figure. ACI delivered a trailing four-quarter earnings surprise of 8.9%, on average.
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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.

Mama's Creations Q1 Earnings Awaited: Key Insights for Investors

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Dimensional U.S. Equity Market ETF (Symbol: DFUS) where we have detected an approximate $263.4 million dollar outflow -- that's a 1.3% decrease week over week (from 253,200,000 to 250,000,000). Among the largest underlying components of DFUS, in trading today CrowdStrike Holdings Inc (Symbol: CRWD) is down about 9%, Deere & Co. (Symbol: DE) is up about 2.6%, and Altria Group Inc (Symbol: MO) is higher by about 1.1%. For a complete list of holdings, visit the DFUS Holdings page » The chart below shows the one year price performance of DFUS, versus its 200 day moving average:
Looking at the chart above, DFUS's low point in its 52 week range is $64.12 per share, with $82.965 as the 52 week high point — that compares with a last trade of $82.32. 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 ».
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.
Further DFUS Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DFUS, CRWD, DE, MO: Large Outflows Detected at ETF

Key Points
U.S. adult smoking rates continue to reach all-time lows.
Altria has been able to offset declining volume with its pricing power.
Altria hasn't been making as fast a progress in its non-smoking segments as some investors would like.
In sports, it's much easier to ignore off-court antics when they're from your star player. The same thought process is often applied to stocks, too. It's much easier to ignore a company's red flags if its stock is producing.
That's the position that Altria (NYSE: MO) has found itself in recent years, with its business and attractive dividend. According to the CDC, U.S. adult smoking rates have declined to an all-time low, at 9.1%. As the country's largest tobacco company, Altria has been directly affected by this. It's a shrinking market.
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But as one of the stock market's premier dividend stocks, is it worth ignoring the elephant in the room?
A portfolio built for any type of consumer
Despite falling volume, Altria's one saving grace has been its pricing power. Cigarette smokers tend to like what they like and will spend whatever (within reason) it costs for their preferred product. In cases where rising prices push customers toward more discount brands, Altria's portfolio helps it retain some of those customers by having options.
A good example is the first quarter, where Altria's flagship Marlboro brand lost 1.4 percentage points in retail share, while its discount brand, Basic, gained 2.4 percentage points. Ideally, you'd want your customers in your premium segment because the margins are higher, but that's a much better alternative than losing them completely.
Marlboro will continue to be Altria's foundation and its biggest brand equity, but it's nice to know you have a portfolio that can cater to both premium and budget-conscious consumers.
Just how attractive is Altria's dividend?
I consider Altria a premier dividend stock because of its consistently high yield and longevity. Its current dividend yield is 6.1%, slightly below its 6.6% average over the past decade. For comparison, the S&P 500's current yield is barely above 1% (as of June 1).
Altria is also a Dividend King (a company with at least 50 consecutive years of dividend increases), with a 56-year streak of increases (60 total in that time). The company knows its dividend is the selling point for investors, so it prioritizes keeping it healthy and growing. It's far from a growth stock, but its dividend and recent share buybacks are as shareholder-friendly as they come.
Financially, Altria doesn't seem to be in any major trouble sustaining its dividend for now. In Q1, its free cash flow was $2.23 billion, and it paid $1.8 billion in total dividends and $280 million in share buybacks. That 81% payout ratio (excluding buybacks) is still safe, but again, there's the elephant in the room.
What smoke-free product is coming to save the day?
The story of Altria is a race against time. In other words, can it find a viable smoke-free alternative by the time the declining smoking rates become an irreversible issue? I don't think it will happen quickly, but I do think Altria's runway is a bit longer than some skeptics believe.
It's true that after Altria's failed $12.8 billion Juul experiment and Njoy fiasco, it doesn't necessarily deserve the benefit of the doubt. But there are a few positives to be optimistic about. Right now, Altria is banking on its On! nicotine pouches becoming a viable product. While they haven't been able to stand up against the popular Zyn nicotine pouches, they have been making progress nonetheless.
In Q1, the number of On! cans shipped increased 17.5% year over year to 46.2 million. They lost 0.8 percentage points in the oral tobacco market, but right now, footprint matters. They're now available in more than 100,000 stores in all 50 U.S. states. It's still an uphill battle for Altria in the segment, but the turnaround doesn't have to happen overnight. At its scale, there just needs to be progress.
With its attractive and reliable dividend, I think it's worth investors being patient until there's a clearer reason to ring the alarm and jump ship.
Should you buy stock in Altria Group right now?
Before you buy stock in Altria Group, consider this:
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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.

This Premier Dividend Stock Has 1 Major Issue, But Does Its Ultra-High-Yield Dividend Make It Worth It?

Key Points
Coca-Cola’s beverage business is still booming.
Altria’s smoke-free expansion will drive its long-term growth.
P&G’s transformation over the past decade is paying off.
The S&P 500 has rallied nearly 30% over the past 12 months, even as unpredictable economic policies and geopolitical conflicts rattled the global economy. But high-flying AI stocks drove much of that rally -- and the index now looks historically expensive at 33 times earnings.
Whenever the market gets overheated, I make sure that I own some defensive dividend plays that can weather the imminent pullback. The consumer staples sector -- which houses some of America's most resilient blue chip stocks -- is a great place to look for those investments.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Let's take a look at three of my favorite dividend-paying consumer staples plays -- Coca-Cola (NYSE: KO), Altria (NYSE: MO), and Procter & Gamble (NYSE: PG) -- and see why they're worth buying as most investors focus on higher-growth AI stocks or news-driven energy plays.
Coca-Cola
Coca-Cola, the world's largest beverage company, pays a forward yield of 2.7%. It's raised its dividends for 64 consecutive years, making it a Dividend King that has raised its payout annually for at least 50 straight years. It maintained that streak through nine official recessions, indicating it's an evergreen company that can easily weather any future downturns.
To counter declining soda consumption, Coca-Cola expanded its portfolio with more bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and even alcoholic drinks. It also refreshed its flagship sodas with healthier versions, smaller serving sizes, and new flavors. To maintain stable margins, it produced only concentrates and syrups for its drinks -- which it sold to independent bottling partners for them to produce and distribute the finished products.
From 2025 to 2028, analysts expect Coca-Cola's EPS to grow at a steady 6% CAGR. Its stock still looks reasonably valued at 24 times this year's earnings, and it should easily bounce back from the next market downturn.
Altria
Altria, the top tobacco company in America, pays a forward yield of 6.2%. This Dividend King has raised its dividend 60 times over the past 57 years, even as adult smoking rates declined. By raising prices, cutting costs, diversifying its portfolio beyond cigarettes, and repurchasing more stock, it grew EPS even as revenue growth slowed to a crawl.
Altria expects the expansion of its smoke-free business -- which sells e-cigarettes, nicotine pouches, and snus -- to gradually reduce its long-term dependence on cigarettes and cigars. By 2028, it expects to generate at least $5 billion in smoke-free revenue, equivalent to more than a quarter of its projected sales.
Assuming that expansion pays off, analysts expect Altria's EPS to grow at a 13% CAGR from 2025 to 2028. That's a robust growth rate for a stock that trades at 12 times this year's earnings, and it will likely attract more investors as a defensive play if the market crashes.
Procter & Gamble
Procter & Gamble, one of the world's largest consumer staples companies, pays a forward yield of 3%. It's also a Dividend King that has raised its payout annually for 70 consecutive years. It owns dozens of well-known brands -- including Tide, Pampers, Tampax, Charmin, Bounty, Gillette, Oral-B, Head & Shoulders, and SK-II. That scale and diversification have enabled it to generate stable growth through economic downturns.
Over the past decade, P&G streamlined its portfolio by divesting over 100 of its weaker brands, updated its products to target higher-end consumers and widen its moat against cheaper private label brands, and sold more products through e-commerce platforms. It also overhauled its global logistics infrastructure to address volatile tariffs and geopolitical conflicts.
From fiscal 2025 (which ended last June) to fiscal 2028, analysts expect P&G's EPS to grow at a 5% CAGR. At 21 times this year's earnings, it still looks like a safe place to park your cash.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, 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 Coca-Cola 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 $462,983!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,447!*
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*Stock Advisor returns as of June 2, 2026.
Leo Sun has positions in Altria Group and Coca-Cola. 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.

My Top 3 Consumer Staples Dividend Stocks to Buy Now

Key Points
The First Trust Morningstar Dividend Leaders ETF trounced the market in 2022 with a positive return.
The WisdomTree U.S. High Dividend ETF crushed the indexes during the first-quarter correction.
Both ETFs are great diversifiers and hold up well when the broader market heads south.
When the markets are rising, you might feel like every decision is working out for you, but when they are falling, you want to make sure you have investments that will protect you on the downside. It's a key element of a diversified portfolio.
Often, investors think they have a diversified portfolio of small caps, large caps, growth, and value, but in reality, when the market tanks, most everything goes down to varying degrees.
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That's why it's important to find stocks and exchange-traded funds (ETFs) that truly zig when the markets zag -- that is, they rise when all the other indexes are falling.
Here are two ETFs built to win when the broader market loses -- with a history of doing so during past market pullbacks. You may get sector funds or gimmick strategies that outperform in certain cycles, but these two are broad-market funds that have consistently generated positive returns in down markets.
1. First Trust Morningstar Dividend Leaders ETF
The First Trust Morningstar Dividend Leaders ETF (NYSEMKT: FDL) has a history of not just outperforming during downturns but generating positive returns. In the 2022 bear market, when the S&P 500 (SNPINDEX: ^GSPC) fell 19%, FDL gained about 3% for the year. From the beginning of this year through March 30, when the S&P 500 fell 7.3% to its recent low and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 10.5%, the First Trust Morningstar Dividend Leaders ETF was up about 15%. That's significant outperformance.
The ETF tracks the Morningstar Dividend Leaders Index, which uses a proprietary model to screen for stocks with a history of maintaining consistent, sustainable dividends. The roughly top 100 stocks ranked highest in the model are included in the portfolio, weighted by the dollar value of their dividend payments, with certain caps in place. Currently, it holds about 85 stocks.
Currently, the three largest holdings are ExxonMobil, Chevron, and Verizon.
At recent prices, the ETF is up about 15% year to date (YTD) and 25% over the past year on a total return basis, with dividends reinvested. Over the past five- and 10-year periods, it has averaged annualized total returns of 12.5% and 11%, respectively.
2. WisdomTree U.S. High Dividend ETF
The WisdomTree U.S. High Dividend ETF (NYSEMKT: DHS) is another ETF that has consistently outperformed during corrections. In 2022, DHS returned about 4%, which beat the S&P 500 and Nasdaq by a wide margin. This year, through March 30, it was up about 7%, crushing the indexes.
Through May 27, the ETF has returned about 12% YTD and roughly 24% over the past 12 months. Over the past five- and 10-year periods, DHS has average annualized returns of 11% and 10%, respectively, on a total return basis.
This ETF is based on the proprietary WisdomTree U.S. High Dividend Index, which tracks the performance of companies with high dividend yields. The stocks are weighted in the portfolio by the proportionate share of the dividends each company is projected to pay in the coming year. Holdings are also subject to a composite risk score, which looks at value, quality, and momentum.
The three largest holdings in the ETF right now are Altria Group, Philip Morris, and AbbVie.
There are obviously ETFs that have performed much better than these two over the years, but the idea of owning these two is to smooth out the total returns in your portfolio when markets go south. There are also sector ETFs, particularly energy sector ETFs, that have performed very well during recent market downturns, but energy markets are cyclical and unpredictable.
Of these two, the First Trust Morningstar Dividend Leaders ETF has been the slightly better, more consistent performer. But both are excellent diversifiers.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Chevron. The Motley Fool recommends Philip Morris International and Verizon Communications. 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.

2 ETFs That Have Held Up Best During Every Recent Market Pullback

Investors in Altria Group Inc (Symbol: MO) saw new options become available today, for the July 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MO options chain for the new July 10th contracts and identified the following put contract of particular interest.
The put contract at the $70.00 strike price has a current bid of 5 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $70.00, but will also collect the premium, putting the cost basis of the shares at $69.95 (before broker commissions). To an investor already interested in purchasing shares of MO, that could represent an attractive alternative to paying $72.55/share today.
Because the $70.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 65%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.07% return on the cash commitment, or 0.61% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Altria Group Inc, and highlighting in green where the $70.00 strike is located relative to that history:
The implied volatility in the put contract example above is 29%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $72.55) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Further MO Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting MO Put Options For July 10th

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Consumer Staples ETF (Symbol: IYK) where we have detected an approximate $229.5 million dollar inflow -- that's a 16.7% increase week over week in outstanding units (from 19,150,000 to 22,350,000). Among the largest underlying components of IYK, in trading today Procter & Gamble Company (Symbol: PG) is up about 3.7%, CVS Health Corporation (Symbol: CVS) is up about 0.8%, and Altria Group Inc (Symbol: MO) is higher by about 0.1%. For a complete list of holdings, visit the IYK Holdings page » The chart below shows the one year price performance of IYK, versus its 200 day moving average:
Looking at the chart above, IYK's low point in its 52 week range is $65.21 per share, with $77.70 as the 52 week high point — that compares with a last trade of $72.98. 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 ».
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.
Further IYK Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IYK, PG, CVS, MO: Large Inflows Detected at ETF

The following companies are expected to report earnings prior to market open on 05/27/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
PDD Holdings Inc. (PDD)is reporting for the quarter ending March 31, 2026. The internet company's consensus earnings per share forecast from the 2 analysts that follow the stock is $2.03. This value represents a 48.18% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PDD is 8.61 vs. an industry ratio of 18.30.
Bank Of Montreal (BMO)is reporting for the quarter ending April 30, 2026. The bank (foreign) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $2.80. This value represents a 52.17% increase compared to the same quarter last year. In the past year BMO has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BMO is 13.92 vs. an industry ratio of 11.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Bank of Nova Scotia (BNS)is reporting for the quarter ending April 30, 2026. The bank (foreign) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $1.46. This value represents a 37.74% increase compared to the same quarter last year. BNS missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -7.02%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BNS is 13.23 vs. an industry ratio of 11.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Dick's Sporting Goods Inc (DKS)is reporting for the quarter ending April 30, 2026. The retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.87. This value represents a 14.84% decrease compared to the same quarter last year. In the past year DKS has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2027 Price to Earnings ratio for DKS is 16.23 vs. an industry ratio of 22.50.
Dycom Industries, Inc. (DY)is reporting for the quarter ending April 30, 2026. The building company's consensus earnings per share forecast from the 4 analysts that follow the stock is $2.50. This value represents a 19.62% increase compared to the same quarter last year. In the past year DY has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.28%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for DY is 31.90 vs. an industry ratio of 28.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Kingsoft Cloud Holdings Limited (KC)is reporting for the quarter ending March 31, 2026. The internet software company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.15. This value represents a 6.25% increase compared to the same quarter last year. KC missed the consensus earnings per share in the 1st calendar quarter of 2025 by -14.29%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for KC is -30.26 vs. an industry ratio of -278.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Bath & Body Works, Inc. (BBWI)is reporting for the quarter ending April 30, 2026. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.29. This value represents a 40.82% decrease compared to the same quarter last year. BBWI missed the consensus earnings per share in the 4th calendar quarter of 2025 by -12.5%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for BBWI is 6.80 vs. an industry ratio of 22.50.
Abercrombie & Fitch Company (ANF)is reporting for the quarter ending April 30, 2026. The retail (shoe) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.26. This value represents a 20.75% decrease compared to the same quarter last year. In the past year ANF has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 3.37%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ANF is 7.27 vs. an industry ratio of 11.70.
Capri Holdings Limited (CPRI)is reporting for the quarter ending March 31, 2026. The retail (shoe) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.11. This value represents a 102.24% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CPRI is 13.29 vs. an industry ratio of 11.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Mesa Laboratories, Inc. (MLAB)is reporting for the quarter ending March 31, 2026. The medical instruments company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.78. This value represents a 7.88% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MLAB is 14.96 vs. an industry ratio of 0.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Monro, Inc. (MNRO)is reporting for the quarter ending March 31, 2026. The business services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.04. This value represents a 55.56% increase compared to the same quarter last year. MNRO missed the consensus earnings per share in the 1st calendar quarter of 2025 by -200%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MNRO is 29.91 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Movado Group Inc. (MOV)is reporting for the quarter ending April 30, 2026. The jewelry retail company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.05. This value represents a 37.50% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2027 Price to Earnings ratio for MOV is 18.59 vs. an industry ratio of 10.10, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.