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 looks like a mature cash generator with very strong profitability, but with notable balance sheet constraints. A P/E ratio of 17.68 is slightly below the industry median, which does not look expensive, especially given the high margins and stable earnings. At the same time, a P/S ratio of 4.90 is significantly above the industry median, so on a revenue basis the market is already paying a premium for quality and stability. A P/FCF of 12.61 is below the median, which supports the valuation, but this positive is partly offset by weak liquidity: a current ratio of 0.52 and a quick ratio of 0.38 indicate limited short-term financial cushion. Profitability is very strong: ROA of 23.06, an operating margin of 46.78%, and a net margin of 33.91% are noticeably above the industry, and margin trends over recent periods have generally been stable. EBITDA, operating income, and net income remain high, while revenue is holding at a comparable level and does not show a sharp deterioration. EPS and forecast EPS are also above industry benchmarks, confirming the business’s ability to generate earnings per share. On the other hand, long-term debt of 22.89 billion and negative shareholders’ equity create elevated financial risk and limit room for aggressive revaluation. Negative total shareholder equity is especially important: it makes some traditional multiples less informative and increases sensitivity to interest rates and refinancing. The dividend yield in the latest data does not support the case for additional shareholder return, so the dividend factor currently does not add a premium to the valuation. Overall, the fundamentals are more solid than weak, but not convincing enough to justify a meaningful increase in the target. For an investor, this implies a moderately positive profile with strong profitability and cash flow, but capped upside due to debt, weak liquidity, and a high revenue-based valuation. Therefore, only a small conservative downward adjustment is appropriate, rather than a revision of the company thesis.

Altria Group, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, незначительно вырос

High margins and MO profitability support the valuation, but weak liquidity, high debt, and the revenue premium limit re-rating potential.

Key Points
Altria is the owner of several well-known tobacco, e-cigarette, and nicotine pouch brands.
The company carries a very strong dividend yield.
However, through the first six months of the year, dividends paid exceeded free cash flow.
Investing in dividend stocks is a great way for investors to establish a passive stream of income that is often more reliable than investing solely for appreciation.
However, there is more to dividend investing than meets the eye. Companies may be forced to cut their dividends if their operations start to slip, and high dividend yields can turn into a trap.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Altria Group (NYSE: MO) has long been viewed as a strong dividend stock, and the company recently raised its quarterly dividend by nearly 5%. Is the Dividend King, a company that has raised its dividend for 50 consecutive years, a buy?
What does Altria do, and how is the business performing?
Before examining Altria's dividend, investors should understand what the company does, as the business itself generates the free cash flow and earnings that ultimately drive the dividend.
Investors unfamiliar with Altria will likely be more familiar with some of the brands the company owns. Altria makes tobacco products such as cigarettes, as well as smoke-free products like nicotine patches. One of its most renowned brands is Philip Morris USA, the maker of Marlboro cigarettes.
While there are still plenty of people who smoke cigarettes, health concerns have naturally led people to look elsewhere for their nicotine, particularly to smokeless products such as nicotine pouches and e-cigarettes. Altria owns brands such as Copenhagen, Skoal, and on! Plus.
In the first half of 2026, Altria reported net revenue of over $11.5 billion, up 1.6% from the same period in 2025. Adjusted diluted earnings per share grew nearly 5%.
In the first half of the year, smokeable product shipment volume declined by 2.7% compared with the same period in 2025. Oral tobacco product shipment volume fell 6%.
On Altria's second-quarterearnings call CFO Heather Newman said, "Economic pressure on adult smokers continued to impact cigarette industry dynamics," which in turn led people to turn to cheaper brands for their smoking habits.
Meanwhile, oral tobacco products struggled due to tough comparables in 2025, as consumers shifted away from moist tobaccoless products toward nicotine pouches. On! volume rose 5.1% in the first half of the year, compared to the same period in 2025.
Altria's strong dividend
On Aug. 27, Altria increased its quarterly dividend by 4.7% to $1.11 per share, for an annualized dividend of $4.44 per share. This gives Altria an incredibly strong dividend yield of over 6.5%.
What's even more impressive is that Altria is a Dividend King, meaning it has paid and raised its annual dividend for at least 50 consecutive years. In fact, Altria has done this for 57 years, an accomplishment very few companies can match.
As mentioned, the key to evaluating dividend companies is ensuring they generate sufficient earnings and free cash flow to continue paying the dividend and raise it in the future. With the new dividend, Altria would pay out $2.22 in dividends over six months, which is equivalent to roughly 79% of the company's adjusted diluted earnings through the first half of 2026.
Meanwhile, Altria generated nearly $2.9 billion of free cash flow through the first half of 2026 (operating cash flow minus capital expenditures), which is actually less than the nearly $3.6 billion in dividends the company paid out, and that's before the recent increase.
Cash and equivalents have also fallen from nearly $4.5 billion at the end of 2025 to nearly $2.4 billion at the end of June, although it's not uncommon for the company to burn more cash in the first half of the year and then rebuild it in the second half.
Ultimately, being a Dividend King makes the dividend a critical part of Altria's investment thesis. Management knows this and will try to avoid ending this streak at all costs.
That said, the financials are a bit tighter in this case, so while I believe you can invest in this dividend stock, you'll also need to monitor the quarterly financial results to ensure there is no deterioration in the balance sheet.
Should you buy stock in Altria Group right now?
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Dividend King Altria Recently Raised Its Quarterly Dividend by Nearly 5%. Is the Stock a Buy?

Key Points
It’s been a rough go of things for PepsiCo shareholders of late, but the business is fine.
Tobacco giant Altria Group is likely to be around -- and dishing out dividends -- for far longer than many investors might expect.
Verizon Communications may not be a high-growth opportunity, but it’s a fantastic opportunity to plug into reliable dividend growth.
Do you need more investment income than your portfolio is currently giving you? The recent rise in interest rates certainly puts bonds on more investors' radars. If you're going to need this income to at least have a shot at keeping up with inflation, however, dividend stocks arguably remain the smarter bet.
With that as the backdrop, here's a closer look at three high-yielding dividend stocks that could generate over $1,600 worth of annual dividend income with just $10,000 stakes in each one.
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PepsiCo
It's been an unusually disappointing past three years for patient PepsiCo (NASDAQ: PEP) shareholders. The beverage company's stock is now down 30% from its mid-2023 peak and back within sight of the multiyear low made around the middle of last year.
Blame the economic backdrop, mostly. Inflation has not only worked against PepsiCo by raising its production costs but has forced shoppers into becoming more cost conscious as well. PepsiCo's product lineup has also lost some of its marketing mojo as consumers rekindle their interest in healthier snacking. It's all been taking a toll on the company's bottom line.
Or was, anyway. Last quarter's organic revenue growth of 2.4% doesn't seem like much, but it's quite a bit for a consumer staples name that had been struggling and is still in the midst of an overhaul that includes the recent debut of new products like a prebiotic cola and a protein-infused version of its popular Doritos brand of snack chips. The company expects comparable revenue growth for the remainder of the year to be outpaced by per-share earnings growth of between 4% and 6%. Again, for the industry, not bad.
The irony? Despite the stock's sizable pullback, neither the company nor the stock's dividend was ever -- and still isn't -- facing an existential crisis. The stock's 54-year streak of annual dividend increases isn't at any real risk of being broken anytime soon either. In fact, PepsiCo has earned the title of Dividend King thanks to this record of annual dividend increases for over 50 years. The 30% pullback from 2023's peak has merely pumped the ticker's forward-looking dividend yield up to a multidecade high of 4.3%, That spells opportunity for anyone who can see the bigger, longer-term picture.
Altria Group
There will come a time when the tobacco business finally collapses. That time is much further down the road than most smoking-cessation advocates might care to admit though. According to data from the U.S. Center for Disease Control and Prevention, about one out of every ten Americans still smokes, and that last 10% is proving to be a tough proverbial nut to crack. In the meantime (despite its own risks), vaping usage continues to rise, particularly among young adults.
The point is, there's still good money to be made within this sliver of the "vice" business, and there will be for a long while.
Enter Altria Group (NYSE: MO), although you may better know it by its brands like Philip Morris and Marlboro, or perhaps to a lesser extent, vaping brand NJOY or nicotine pouch maker Helix Innovations. While the company sold about 3% fewer cigarettes during the first half of 2026 than it did in the first half of 2025, net revenue continues to edge higher thanks to a combination of continued pricing power and sales of non-tobacco products. Arguably most important -- largely thanks to stock repurchases -- adjusted per-share profits improved by 2.8% in the second quarter of this year and are higher to the tune of 4.9% year to date. This of course supports continued payment of its dividends.
Again, there's no denying the end of Altria's business as we currently know it is coming. The company's "moving beyond smoking" slogan explicitly concedes as much.
Its underlying dividend behind the stock's forward-looking yield of 6.5% isn't in any immediate jeopardy, and the eventual wind-down of its current operation won't suddenly happen. Investors should be able to see well ahead of time when the business is reaching the tipping point of sustainability. Enjoy its sizable dividend payments until then.
Verizon Communications
Finally, add Verizon Communications (NYSE: VZ) to your list of dividend stocks to buy for good dividend income. At its forward-looking yield of 5.7%, a $10,000 position would produce $570 worth of annual dividend payments.
You know the company. Verizon is, of course, the country's biggest wireless telecom service provider. As of June, nearly 147 million mobile devices were connected to its network, plus a few hundred-thousand wireless broadband subscribers.
It's not a high-growth business by any stretch of the imagination. The U.S. mobile market is highly saturated and highly competitive. Any real revenue growth will come from population growth and price increases, neither of which is a major growth driver.
What Verizon lacks in raw growth firepower, however, it more than makes up for in reliable cash flow.
Think about it. Good or bad, most Americans have made their smartphones a centerpiece of their existence. A recent survey from Reviews.org reveals the average person living in the United States spends over four hours per day looking at their smartphone's screen, topping their total connected television view time of just under three hours. With the well-developed habit now firmly in place, it's not a question of whether consumers will continue paying to keep their mobile devices connected. It's just a question of which provider they'll choose. And Verizon is doing pretty well in that regard too, adding 184,00 (net) postpaid phone customers in Q2 of this year, accelerating Q1's count of 55,000 despite market saturation.
What this effectively means for Verizon shareholders is dependable, continued dividend growth, extending the company's current track record of 20 consecutive years of annual dividend increases.
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All It Takes Is $10,000 Invested in Each of These 3 High-Yield Dividend Stocks to Generate Over $1,650 in Yearly Dividends

The Zacks Tobacco industry is navigating a challenging backdrop marked by persistent pressure on cigarette volumes, elevated costs and a rapidly changing product landscape. Inflationary and macroeconomic pressures continue to affect consumer spending, while regulatory restrictions and growing adoption of smoke-free alternatives weigh on traditional cigarette consumption. Higher input costs and continued innovation spending also pressure profitability.
Despite these challenges, the industry’s shift toward smoke-free alternatives is creating long-term opportunities. Philip Morris International PM, British American Tobacco BTI and Altria Group MO are expanding across heated tobacco, vapor and oral nicotine while leveraging the pricing power and cash generation of traditional businesses. Continued innovation and broader portfolios support their positioning in an evolving tobacco market.
About the Industry
The Zacks Tobacco industry includes companies that manufacture and sell cigarettes as well as tobacco and nicotine-based products, such as cigars, snuffs and oral tobacco. Some companies also offer reduced-risk products (RRPs), such as e-cigarettes, vaping and heat-not-burn variants. A few of the firms are engaged in making devices and attachments needed in vaping and heat-not-burn products. Most products manufactured by the tobacco industry participants fall under the strict vigilance of the U.S. Food and Drug Administration and are required to follow the permissible levels of nicotine in manufacturing. Players in this space sell products mostly through large retailers, distributors, convenience stores, drugstores, wholesalers and grocery chains. Some international tobacco firms also operate in the country through subsidiaries.
3 Trends Shaping the Future of the Tobacco Industry
Persistent Pressure on Cigarette Volumes: The tobacco industry continues to face significant pressure on cigarette sales volumes amid persistent inflation and broader macroeconomic challenges that have affected consumer spending behavior. Rising costs and the increasing adoption of smoke-free alternatives are contributing to declining cigarette consumption. In addition, regulatory restrictions on tobacco sales, marketing and product offerings continue to weigh on the category. Since traditional cigarettes remain a major source of revenues and profits for tobacco companies, the ongoing decline in cigarette consumption remains a key concern for the industry.
Escalated Costs: Industry participants continue to grapple with elevated costs. Inflationary pressures affecting key inputs such as tobacco leaf, energy and labor remain a concern. At the same time, increased investments in research, innovation and commercialization of smoke-free products are adding to operating expenses. These factors collectively pose risks to profit margins, even as companies seek to offset the pressures through pricing actions, productivity initiatives, disciplined investments and cost efficiencies.
Rising Popularity of Smoke-Free Options: The growing adoption of smoke-free alternatives, including heated tobacco, vapor products and oral nicotine, is reshaping the tobacco landscape. Changing consumer preferences, continued product innovation and evolving regulatory frameworks are supporting the shift toward alternative nicotine products. These products, backed by expanding portfolios and broader availability, continue to gain traction across markets. In response, major tobacco companies are increasing investments in these categories to strengthen their smoke-free portfolios and enhance consumer appeal. As a result, the industry is witnessing a gradual shift in product and revenue mix, with continued growth in smoke-free categories expected to support its long-term transformation.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Tobacco industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #234, which places it in the bottom 6% of more than 248 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates drab near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
The Zacks Tobacco industry has underperformed the S&P 500 composite but outperformed the broader Zacks Consumer Staples sector over the past year.
The industry has gained 4.4% over this period compared with the broader sector’s growth of 1.2%. Meanwhile, the S&P 500 has risen 16.8% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing consumer staple stocks, the industry is currently trading at 14.90X compared with the S&P 500’s 19.83X and the sector’s 16.76X.
Over the past five years, the industry has traded as high as 16.19X, as low as 9.03X and at the median of 11.65X, as the chart below shows.
Price-to-Earnings Ratio (Past Five Years)
3 Tobacco Stocks Worth Considering
Philip Morris International: This Zacks Rank #3 (Hold) company is undergoing a long-term transformation from traditional cigarettes toward a predominantly smoke-free future. Philip Morris has established itself as a leader in smoke-free products through innovation, strong brand equity and pricing power, supported by a growing multi-category portfolio. Flagship brands such as IQOS and ZYN continue to gain traction across markets, helping reshape the company’s product mix in line with evolving consumer preferences. This strategic shift, combined with the resilience of its combustible business, positions Philip Morris to drive sustainable growth and support long-term value creation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PM’s 2026 and 2027 earnings per share (EPS) has increased from $8.33 to $8.36 and $9.16 to $9.19, respectively, in the past seven days. Shares of Philip Morris have jumped 13.1% in the past year.
Price and Consensus: PM
British American Tobacco: The company is steadily advancing its transformation toward a more smokeless future through a diversified multi-category strategy. This Zacks Rank #3 company has been investing in New Categories across vapor, heated tobacco and modern oral nicotine, supported by ongoing innovation, strong brands and a broad global presence. Flagship brands such as Vuse, glo and Velo anchor this portfolio, helping British American Tobacco progressively rebalance its business in line with evolving consumer preferences and regulatory trends. Backed by strong pricing power and continued cash generation from the traditional combustible business, the company remains well-positioned to support its transformation and pursue resilient long-term growth.
The Zacks Consensus Estimate for BTI’s 2026 and 2027 EPS has remained unchanged in the past seven days at $4.82 and $5.20, respectively. Shares of BTI have fallen 4.2% in the past year.
Price and Consensus: BTI
Altria Group: This Zacks Rank #3 company is gradually advancing its transition toward a smoke-free future while leveraging the strength of the traditional tobacco business. Altria is focusing on reduced-risk products, innovation and disciplined execution as it adapts to evolving consumer preferences and a complex regulatory landscape. A key component of this strategy is Altria’s on! nicotine pouch franchise, which continues to expand its presence in the growing category. Supported by strong pricing power and the enduring equity of flagship brands such as Marlboro, Altria is using its highly cash-generative business to support long-term growth and navigate the changing U.S. tobacco market.
The Zacks Consensus Estimate for MO’s 2026 and 2027 EPS has remained unchanged in the past seven days at $5.67 and $5.84, respectively. Shares of Altria have surged 3.7% in the past year.
Price and Consensus: MO
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3 Tobacco Stocks to Watch Amid Changing Industry Dynamics

Key Points
Altria found a new profit source by using tobacco exports to unlock tax savings.
Kraft Heinz is betting Disney can help rebuild relevance for its aging food brands.
Both yields beat Treasuries, but remember, investors are accepting real business risks for that extra income.
The 30-year Treasury bond pays about 5.24% right now, which is a genuinely difficult number for dividend stocks to beat. It is also the highest that benchmark has been in years, well above its 10-year yield average of 4.74%, and it comes with a guarantee from the U.S. government that no company can match. Recently, the U.S. Treasury announced a larger-than-expected $6 billion buyback of longer-dated Treasuries, while Secretary Scott Bessent challenged this week's investors to bet against his yen strategy.
So when a consumer goods stock offers more, the honest question is not "Why is the yield so high?" but "What is the market afraid of, and is that fear correct?" Two consumer names clear the bar today. Each one is priced for something to go wrong. My read is that in two of the three cases, the market has the direction right and the magnitude wrong.
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1. Altria pays 6.4% and just found money in the tax code
Altria Group (NYSE: MO) raised its quarterly dividend 4.7% to $1.11 a share in late August, marking the 61st increase in 57 years and putting the yield at about 6.4%. What interests me more than the raise is what came three days earlier. Philip Morris USA, an Altria operating company, entered a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International Inc., with first shipments expected in early 2027.
Reuters reporter Emma Rumney explained the mechanism as a rebate called the "double duty drawback" that lets U.S. tobacco companies that export products claw back federal excise taxes already paid on domestic sales. Altria makes Marlboro in the United States and sells it nowhere else, so building an export channel is a way to unlock a money source it previously could not touch.
That is a real, structural profit source that has nothing to do with selling more cigarettes to Americans, which matters because Americans keep buying fewer of them. The risk is unresolved: Njoy Ace, Altria's vaping product, has been off shelves since April 2025 after a patent ruling, and management still has not announced when it might return. A federal judge also rejected Altria's constitutional challenge to the trade commission's authority in early September. Buy this for the cash potential, not the transition.
2. Kraft Heinz yields 6.4% and rented Disney's imagination
The Kraft Heinz Company (NASDAQ: KHC) declared its regular $0.40 quarterly dividend in August, good for roughly 6.4%. The payout has been flat for years, and the payout ratio looks alarming on paper because of writedowns, so nobody should mistake this for a growth dividend.
What changed my thinking was July's multiyear alliance with The Walt Disney Company, putting 10 Kraft Heinz brands into Disney parks, cruise ships, studios, and streaming. Kraft Heinz chief executive Steve Cahillane, who took over in January, paused the planned company split and redirected roughly $700 million into brands instead.
Here is my actual stance. Shelf space is a shrinking asset for legacy food brands.Walk into many grocery stores, and you see condiments being rebranded as the store's own brand. Building condiment stations in a massive customer park is Kraft Heinz buying cultural relevance it can no longer generate on its own. This seems to me to be a safe bet on consistent volume for consistent product sales.
Both these companies are built around consistency and solid day-to-day products, and that matters when you're looking for income. But bonds offer consistency, too, so at these yields, the choice comes down to whether you want the certainty of Treasuries or the higher potential return of owning these companies.
Should you buy stock in Kraft Heinz right now?
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Kraft Heinz and Philip Morris International. The Motley Fool has a disclosure policy.

2 Dividend Stocks to Buy Now With Higher Yields Than the 30-Year U.S. Treasury Bond

Altria Group, Inc. MO is keeping the cigarette strategy centered on the premium segment, which accounts for about 85% of profitability in the cigarette category. That makes Marlboro’s position especially important as cigarette consumers continue to trade down toward discount offerings amid pressure on discretionary income.
In the second quarter of 2026, Marlboro held a 59.6% share of the premium segment, unchanged from a year earlier and up 0.1 percentage point sequentially. However, Marlboro’s share of the total cigarette category fell 1.5 percentage points year over year to 39.5%. At the same time, industry discount retail share rose 2.6 percentage points to 33.8%, reflecting continued trade-down among adult nicotine consumers.
Altria is addressing the shift toward discount cigarettes through a broader PM USA portfolio strategy. Basic’s retail share increased 2.3 percentage points year over year to 2.9% in the second quarter, while targeted promotional support expanded to roughly 35,000 stores during the first half of 2026. The strategy seeks to participate in the discount segment while limiting the impact on Marlboro.
Despite the mix shift, smokeable price realization was 4.5% in the quarter, supported by strong Marlboro net pricing. Smokeable products adjusted OCI increased 2.4% to $3.02 billion, while adjusted OCI margin expanded 0.3 percentage point to 64.8%. The premium segment therefore remains central to cigarette profitability even as discount participation grows.
How Altria Compares With Philip Morris and TPB
Philip Morris International Inc. PM also showed premium-brand resilience in second-quarter 2026. While international combustible pricing rose 10%, Philip Morris’ Marlboro share reached a record 11% of the international cigarette category, up 0.3 percentage points year over year. Philip Morris also maintained a 25.3% cigarette category share, with international combustible gross profit increasing 8% organically in the quarter despite unfavorable geographic mix.
Turning Point Brands, Inc. TPB is also leaning on premium positioning across nicotine products. While Modern Oral investments focus on shelf placement, retail visibility and brand equity to build long-term premium potential, Turning Point Brands described Stoker’s as the segment’s only truly premium product for value-oriented consumers. Turning Point Brands reported Stoker’s segment net sales up 54.5%, with adjusted gross profit rising 40.7% year over year.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have fallen 3.4% in the past three months against the industry’s growth of 2.7%.
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.90X, down from the industry’s average of 14.92X.
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.6% and 3%, respectively.
Altria currently carries 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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Altria Premium Drives 85% of Cigarette Profit: Can This Hold?

Key Points
Altria Group has outpaced the S&P 500 this year, with total returns of 24%, versus 14% for the major market index.
Shares in the Big Tobacco company have since pulled back, on renewed concerns about Altria's strategy to sustain earnings growth, amid falling cigarette consumption rates in the United States.
While sporting a high dividend yield and a low forward valuation, it may not take much to turn this top-performing value stock into a value-and-yield trap.
Since the start of 2026, the S&P 500 (SNPINDEX: ^GSPC) has generated total returns, aka price appreciation with dividends reinvested, of around 14% well above historical averages.
However, plenty of stocks have beaten the S&P 500 this year, and not just the hottest names in tech. In fact, there's one stock in particular, one that may not exactly scream "cutting edge," that has crushed it thus far in 2026, with total returns of more than 24%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The stock? Altria Group (NYSE: MO), America's largest tobacco company and purveyor of popular brands such as Marlboro and Skoal, as well as the nicotine pouch brand On! The question now is whether Altria Group's shares will remain one of the top-performing high yield dividend stocks.
Altria Group has smoked the S&P 500 in 2026
At the start of 2026, investors were mixed on this Big Tobacco stock. At the time, concerns ran high about Altria's ability to adapt to changing nicotine and tobacco consumption habits. Namely, investors were concerned about the company's falling market share in smokeless tobacco and oral nicotine products.
As these products continue to gain or sustain usage rates, while cigarette smoking rates in the United States keep declining, Altria's future hinges heavily on the company making a successful smokeless transformation, much like its former subsidiary, Philip Morris International, has successfully accomplished.
However, during much of early to mid 2026, these concerns took a back seat. For one, due to better-than-feared quarterly results. Tobacco stocks in general also performed well during this time, on growing confidence in the industry's smokefree pivot, which inspired some institutional investors who had shunned the sector to reenter major stocks in the space.
Trading for as much as $77.06 per share in 2026, Altria tumbled back to the mid-$60s per share in August, on the heels of the company's Q2 2026 earnings release on July 30.
Recent pullback highlights long-term risks
For the quarter, Altria reported just 1.2% net revenue growth, with sales net of exice taxes rising to $5.35 billion. GAAP earnings came in at $1.37 per share, down 2.8% from the prior year's quarter, and falling short of analyst estimates.
Despite declining domestic cigarette usage, Altria has continued to raise earnings and, in turn, its dividend, thanks to cigarette price hikes and growth from its smokeless products. However, price elasticity with cigarettes may only go so far. While demonstrating some success with products like On!, this still pales in comparison to the success of Philip Morris International's Zyn nicotine pouches.
Since August, shares have inched higher, thanks to an announced 4.7% dividend raise and news of a contract manufacturing agreement with Philip Morris International that could help utilize excess production capacity .
Trading for 12 times forward earnings, and with a 6.4% forward dividend yield,Altria still seems cheap. Coupled with its high dividend and strong 2026 performance, it may still seem like a winner. However, this stock could still prove risky for the long-term health of your portfolio. If the company's earnings gambit starts to fail, earnings could take a dive, threatening the stock's Dividend King status and turning this deep-value winner into a yield-and-value trap.
Should you buy stock 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 $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.

Meet the Dirt Cheap 6.4%-Yielding Dividend Stock That's Beating the Market in 2026

Sometimes a company can be growing sales, have an interesting product portfolio, and still end up on the wrong side of the Zacks Rank. That’s because our rank is based on what analysts are doing with their estimates compared to other stocks out there in the universe. If recent estimate revisions have been to the downside, it raises a red flag for us. Sometimes, it can be a harbinger of what’s to come. Other times, it’s just a cautionary tale that bulls should actually be made aware of.
That's exactly what we've got with today's Bear of the Day, Turning Point Brands (TPB). Turning Point Brands is the company behind brands including Zig-Zag and Stoker's, along with a growing presence in the modern oral nicotine category. Revenue growth has actually been pretty impressive. The problem isn't necessarily what's happening on the top line.
The problem is what's happening to earnings estimates. And around here, you know that's what pays the bills. Turning Point Brands currently carries a Zacks Rank #5 (Strong Sell), and it doesn't take much digging to figure out why.
Over the last 60 days, the Zacks Consensus Estimate for 2026 earnings has dropped from $1.97 per share to $1.75 per share. The 2027 estimate has also been cut, falling from $2.75 to $2.51 per share. That's the opposite of what you want to see.
Turning Point Brands, Inc. Price and Consensus
Remember, the Zacks Rank isn't sitting around trying to decide whether this is a great company five years from now. It's looking for changes in analyst earnings expectations that can influence shares over the next several months.
Still, even with next year’s Zacks Consensus Estimate coming down to $2.51, it represents growth of 43% year-over-year. If you smooth that out along with this year’s 55% contraction it is less attractive but it’s still better than the alternative.
The Tobacco industry is in the Bottom 12% of our Zacks Industry Rank. There is only one company in this industry that is currently in the good graces of our Zacks Rank. That’s Zacks Rank #2 (Buy) JAPAN TOB (JAPAY). There are several stocks that are Zacks Rank #3 (Hold) stocks including Altria (MO).
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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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This article originally published on Zacks Investment Research (zacks.com).

Bear of the Day: Turning Point Brands (TPB)

(RTTNews) - Altria Group (MO) subsidiaries Helix Innovations and NJOY, joined by the Texas Food & Fuel Association and two Texas retailers, filed a federal lawsuit on September 2, 2026, in the U.S. District Court for the Northern District of Texas.
The plaintiffs are asking the court to vacate the FDA's 2021 rule governing premarket tobacco product applications (PMTAs), arguing that the framework conflicts with statutory deadlines under the Tobacco Control Act.
Central Dispute: The 180-Day Timeline
The case focuses on when the Tobacco Control Act's 180-day review period begins. Altria subsidiaries contend that FDA improperly delays the statutory clock by conducting Acceptance and Filing Reviews before treating submissions as complete applications. They argue this practice extends review times beyond the law's requirements.
Evidence of Delays
A government audit previously documented substantial delays in FDA's PMTA process, finding that marketing orders for electronic nicotine delivery systems were not issued within the 180-day timeline. The new complaint cites Helix and NJOY applications that remained pending for years, with some nicotine pouch submissions waiting more than 2,200 days before decisions were made.
FDA's Efforts to Accelerate Reviews
The lawsuit comes as FDA has taken steps to reduce its backlog, streamline review stages, and authorize more products.
In 2025, FDA launched a nicotine-pouch pilot program and later reported 70% reduction in pending applications. Recent authorizations include JUUL2 devices and multiple nicotine-pouch products. Despite these efforts, Altria argues that faster reviews do not resolve the underlying legal issue of how the 180-day timeline is calculated.
Broader Legal Implications
The case could reshape how FDA structures PMTA reviews. A narrow ruling might address only the plaintiffs' applications, while a broader decision could require FDA to reconsider its entire framework. Previous litigation has produced mixed outcomes, with courts sometimes upholding FDA's approach and at other times vacating specific marketing denial orders.
MO has traded between $54.70 and $77.06 over the past year. The stock closed Wednesday's trading at $69.56, down 0.01%. In pre-market trading the stock is at $69.71, up 0.19%.
Source: 2Firsts
Glossary
-PMTA (Premarket Tobacco Product Application): The process required by FDA for new tobacco and nicotine products before they can be marketed.
-180-Day Timeline: Statutory deadline under the Tobacco Control Act for FDA to review PMTAs.
-Marketing Denial Order (MDO): FDA's formal rejection of a PMTA, preventing product sales.

Altria Units Sue FDA Over PMTA Rule, Spotlighting Review Delays

Key Points
Altria Group is a Dividend King that has raised its dividend for 57 straight years.
The company is a tobacco giant that grows its cash flow through price hikes.
Volume declines will add a difficulty in the years ahead, but it still looks like a solidly cheap stock to own right now.
A Dividend King is a stock that has raised its dividend payout for 50 consecutive years or more. Very few companies can boast this enduring accomplishment. One of them is Altria Group (NYSE: MO). The tobacco/nicotine giant has raised its dividend for 57 straight years, and 61 times in total, due to the durability of cash flows generated by its cigarette business.
It now trades at a dividend yielding 6.18%. That means, if you have $10,000 invested in Altria Group stock, you will receive a cool $618 in dividends each year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But does that make Altria Group stock a buy?
Dividend growth math
The tobacco business has been fantastic due to its extraordinary pricing power through the decades. Packs of cigarettes -- along with other types of nicotine products -- have grown steadily above the rate of inflation, leading to growing cash flows for companies like Altria and its Marlboro brand.
This has allowed management to steadily grow its dividend per share payout to shareholders. In the last 10 years, Altria's dividend has grown by 74% cumulatively. For long-term shareholders, this can deliver growing income into your portfolio. An investor who bought at a 6.18% dividend yield 10 years ago would now be receiving $1,075 in annual dividend income.
Dividend growth like this has helped Altria Group outperform the stock indices. In the last five years, it has generated a total return of 104%, beating the S&P 500's 82%.
A business struggling to grow
Where Altria Group could run into struggles is its failure to pivot away from smokeable tobacco products like Marlboro or Black and Mild. Cigarette volumes were down 3.2% year over year last quarter and are expected to decline in the future.
Other tobacco giants have worked to replace their cigarette cash flows with healthier alternatives, such as nicotine pouches or electronic vapor. Altria Group is failing to make a dent with its new offerings, such as its on! nicotine pouch brand. Volumes for on! were down 4.2% year over year last quarter, despite a growing overall nicotine pouch category in the United States, and that is with minimal overall market share already.
Unless management can spring a miracle in new nicotine categories, the future of Altria's dividend payments will be from its legacy cigarette business. Specifically, its ability to keep raising prices on cigarette packs sold.
Is Altria Group still a buy?
Where Altria helps itself with dividend growth sustainability is its steady stock repurchase program. It has reduced shares outstanding by 14.4% cumulatively over the last 10 years through these buybacks, which will help grow earnings per share (EPS).
Importantly, for the dividend, a lower total number of outstanding shares will mean that Altria can raise its per-share dividend without increasing the total dollar amount paid to shareholders. This is important for a business whose overall revenue has barely budged in the last five years. You are not buying Altria Group for its growth, but its return of capital to shareholders.
The stock has done well in the last year, with the share price now at $69. It has a price-to-earnings ratio (P/E) of 14.5, which is generally higher than it has been in the last few years, but still, it has one of the fattest dividend yields of the entire market today. What investors need to decide is whether the long history of price hikes and dividend growth can continue for the next decade as well.
I don't think Altria Group stock is a screaming buy right now, but investors will probably do just fine buying today for long-term dividend income, despite the decline in its cigarette business.
Should you buy stock 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 $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Brett Schafer 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.

Altria Group Just Declared Its 61st Dividend Increase in 57 Years. Here's What $10,000 Invested Pays Annually.

In trading on Tuesday, hospital & medical practitioners shares were relative leaders, up on the day by about 1.8%. Leading the group were shares of Surgery Partners, up about 6.2% and shares of Ardent Health up about 3.8% on the day.
Also showing relative strength are cigarettes & tobacco shares, up on the day by about 1.6% as a group, led by Altria Group, trading higher by about 2.7% and Philip Morris International, trading higher by about 1.8% on Tuesday.