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 strong operating profitability, but with notable balance sheet constraints. Its P/E ratio of 14.18 is below the industry median, and its P/FCF also looks moderate, which supports the valuation and suggests that earnings and free cash flow do not appear overheated. At the same time, the P/S ratio is significantly above the industry median, so the market is paying a premium on revenue that must be justified by margin quality and business durability. Profitability is indeed strong: gross margin, operating margin, and net profit margin are all significantly above the median, and their trend over recent periods is generally stable, confirming pricing power and the efficiency of the business model. ROA and ROI are also very high, indicating strong returns on assets and capital, despite weak ROE and return on tangible equity, which are distorted by negative equity. The balance sheet remains the main risk: the current ratio and quick ratio are below comfortable levels, and long-term debt remains large relative to assets and earnings. Negative equity and very low book value make P/B less informative, but they still signal a high financial burden and a limited margin of safety. Revenue, EBITDA, operating profit, and net income are all at high absolute levels and generally appear stable over the years, although volatility is visible in some quarters. Dividend yield has declined compared with earlier periods, so the dividend factor remains supportive, but not as strong as before. Overall, the fundamentals support the current valuation more than they call for a meaningful re-rating, because strong profitability and cash flow are offset by weak liquidity and a high debt load. For an investor, this is a story of a high-quality defensive business with strong margins and stable earnings, but with limited upside for revaluation unless the balance sheet improves and cash flow growth becomes more convincing.

MOEXCNY-12.26

Altria Group, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Strong margins and profitability support MO’s valuation, but weak liquidity, negative equity, and a high debt burden limit revaluation potential.

Key Points
Altria was a reliable income stock over the past decade.
Its stock still looks cheap, and it pays an impressive 5.9% dividend.
Altria (NYSE: MO), the largest tobacco company in the U.S., pays a forward dividend yield of 5.9%. It's raised its dividend annually for 57 consecutive years, making it a Dividend King that has increased its payout for at least 50 straight years.
If you had invested $100 per month over the past ten years into Altria, your principal would have grown from $12,000 to $13,800. But you would also have received about $4,800 in dividends.
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Is Altria still a reliable dividend stock?
Altria's future might seem murky because adult smoking rates in the U.S. have dropped from over 40% in the 1960s to less than 10% today. But to offset that pressure, it constantly raises its cigarette prices, cuts costs, and repurchases more shares to boost its EPS. It's also expanding its smokeless portfolio with e-cigarettes, nicotine pouches, snus, and other products.
By 2028, Altria expects to generate at least $5 billion in smoke-free revenue, equivalent to nearly a quarter of its projected sales. From 2025 to 2028, analysts expect its EPS to grow at a 13% CAGR even as its revenue barely grows. Over the past 12 months, Altria spent 78% of its free cash flow on its dividends -- so it has plenty of room for future hikes. It's also a cheap stock in this frothy market: at $75 per share, it trades at just 13 times forward earnings.
Should you buy stock in Altria Group right now?
Before you buy stock in Altria Group, consider this:
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Leo Sun has positions in Altria Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

If You Invested $100 a Month in This High-Yield Dividend Stock, Here's the Dividend Income It Produced Over 10 Years

Key Points
Some of the best dividend stocks can be found in consumer staples, healthcare, energy, and REITs.
The five dividend stocks featured in this article are paying trailing 12-month yields of 5.88% to 16.72%.
Pfizer might have one of the “safest” dividends in the market with an 88-year consecutive dividend streak.
If you want to earn steady income from your investments, choosing the best high-yield dividend stocks can be a good strategy. Dividend stocks tend to represent companies with strong balance sheets, reliable cash flow, and well-established business models. They are often in steady, so-called "recession-proof" industries. And although every stock carries some risk of loss, stocks that pay strong dividends are often less volatile than tech stocks and growth stocks.
Let's look at a mix of five well-regarded dividend stocks and see how much $10,000 would earn in dividends: tobacco seller Altria Group (NYSE: MO), real estate investment trust AGNC Investment (NASDAQ: AGNC), midstream company Energy Transfer (TXSE: ET), pharmaceutical giant Pfizer (NYSE: PFE), and commercial real estate stock Realty Income (NYSE: O).
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Altria Group (MO): 5.93% dividend yield
Altria is a consumer staples company that owns prominent tobacco brands like Philip Morris USA's Marlboro cigarettes. Altria has also expanded its business into products like e-cigarettes and nicotine pouches. The stock is a Dividend King, with an impressive 57-year track record of paying higher dividends. As of Oct. 14, its trailing 12-month dividend yield was 5.93%.
Factor to Consider
Altria (MO)
Current yield (as of Oct. 14)
5.93%
Payout frequency
Quarterly
How safe is this dividend?
Safe. This Dividend King is likely to keep paying strong dividends.
One risk facing this stock
Declining sales volume due to changing consumer preferences for tobacco products.
AGNC Investment (AGNC): 16.72% dividend yield
AGNC is a mortgage REIT. This company mainly invests in Agency mortgage-backed securities (MBS), which are guaranteed by government agencies like Freddie Mac. As of Oct. 14, AGNC was paying a massive dividend, with a trailing 12-month yield of 16.72%. Although AGNC has paid a steady dividend since 2020, its dividend could be at risk due to a rising interest-rate environment facing the mortgage industry.
Factor to Consider
AGNC Investment Corp. (AGNC)
Current yield (as of Oct. 14)
16.72%
Dollar payout per $10,000 invested
$1,672
Payout frequency
Monthly
How safe is this dividend?
Sustainable, but somewhat risky. As of August, AGNC was trading above its book value per share.
One risk facing this stock
AGNC could be vulnerable to rising interest rates.
Energy Transfer: 6.57% dividend yield
Energy Transfer is a midstream energy company that operates natural gas pipelines in 44 states. The company's "units" (instead of shares) are traded on the Texas Stock Exchange. Energy Transfer has increased its dividend for 19 consecutive quarters. This company is showing strong growth in distributable cash flow (DCF), so its dividend is ideally safe for the foreseeable future.
As of Oct. 14, Energy Transfer LP was paying a strong trailing 12-month dividend yield of 6.57%.
Factor to Consider
Energy Transfer LP (ET)
Current yield (as of Oct. 14)
6.57%
Payout frequency
Quarterly
How safe is this dividend?
Safe
One risk facing this stock
Be aware of tax implications; Energy Transfer is a Master Limited Partnership (MLP), so each "unitholder" in the partnership is responsible for reporting distribution payouts. Investors will need to report this income on an extra K-1 form when filing taxes.
Pfizer (PFE): 6.06% dividend yield
Pfizer is a major pharmaceutical company well known for its COVID-19 vaccine. It could be a good buy today for investors who are bullish on the company's broad research and development pipeline of new potential treatments for cancer, cardiovascular disease, and rare diseases.
As of Oct. 14, Pfizer was paying a trailing 12-month dividend yield of 6.06%. In 2025, the company paid $9.8 billion of cash dividends to shareholders. And Pfizer is remarkably consistent with its dividend history. As of Oct. 6, Pfizer's fourth-quarter 2026 cash dividend will be the 352nd consecutive quarterly dividend paid to its investors.
Factor to Consider
Pfizer (PFE)
Current yield (as of Oct. 14)
6.06%
Payout frequency
Quarterly
How safe is this dividend?
Safe; Pfizer has an 88-year dividend streak to keep up
One risk facing this stock
Pfizer patent cliff: several top-selling drugs will lose patent protection in 2027
Realty Income (O): 5.88% dividend yield
Realty Income is another REIT that specializes in commercial real estate. The past few years have been difficult for the commercial real estate sector, with rising interest rates and declining office occupancy. But Realty Income has a high occupancy rate (98.8% as of June 30) and gets 78% of its rent from retail properties.
If you're bullish on the long-term prospects of real estate and want a steady dividend, Realty Income could be a good buy. The company has increased its dividend payouts for 116 straight quarters (note that it pays dividends monthly). As of Oct. 14, this stock was paying a trailing 12-month dividend yield of 5.88%.
Factor to Consider
Realty Income (O)
Current yield (as of Oct. 14)
5.88%
Payout frequency
Monthly
How safe is this dividend?
Safe; this real estate company has almost 100% occupancy
One risk facing this stock
Rising interest rates; like other real estate stocks, this could be more rate-sensitive than the broader stock market.
Keep in mind that all stocks have risks and dividends (and specific yields) are not guaranteed. These stocks all have a track record of paying consistent dividends, but companies adjust their dividend payouts based on changes in their business and balance sheets. Dividend yields can also decline as share prices rise.
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Here's What $10,000 in Each of These 5 High-Yield Dividend Stocks Could Pay You in a Year

In the latest close session, Altria (MO) was down 1.76% at $67.51. The stock's change was less than the S&P 500's daily loss of 0.25%. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 1.22% over the past month, outpacing the Consumer Staples sector's loss of 4.32% and lagging the S&P 500's loss of 0.42%.
Investors will be eagerly watching for the performance of Altria in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. The company's upcoming EPS is projected at $1.5, signifying a 3.45% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.33 billion, showing a 1.49% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.67 per share and a revenue of $20.63 billion, representing changes of +4.61% and +2.46%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Altria. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Altria is currently a Zacks Rank #4 (Sell).
With respect to valuation, Altria is currently being traded at a Forward P/E ratio of 12.11. This represents a discount compared to its industry average Forward P/E of 13.1.
One should further note that MO currently holds a PEG ratio of 2.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Tobacco industry was having an average PEG ratio of 2.05.
The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 239, positioning it in the bottom 3% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Altria (MO) Dips More Than Broader Market: What You Should Know

Key Points
Coca-Cola’s diversification, scale, and asset-light model make it a reliable income play.
Altria’s smoke-free expansion could transform the company by the end of the decade.
But PepsiCo’s fragmented, asset-heavy business faces tougher near-term challenges.
Dividend Kings, or blue chip companies that have raised their dividends annually for at least 50 consecutive years, are usually stable long-term investments. Even as the U.S. experienced six official recessions over the past five decades, these companies consistently grew their earnings and generated enough cash to cover their dividends.
Three of those Dividend Kings are Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Altria (NYSE: MO), which have raised their dividends annually for 64, 54, and 57 consecutive years, respectively. While all three of these stocks might seem like safe places to park your cash in this tumultuous market, I'd only buy two of them while avoiding the other.
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Buy Coca-Cola and Altria
Coca-Cola, the world's largest beverage company, and Altria, the largest tobacco company in the U.S., might initially seem like shaky investments. Consumers are drinking less soda worldwide, and U.S. smoking rates have dropped to historic lows over the past six decades.
However, Coca-Cola doesn't simply sell soda. It also sells fruit juices, teas, sports drinks, energy drinks, bottled water, dairy products, coffee, and even alcoholic beverages. It also constantly refreshes its flagship sodas with new flavors, healthier versions, and smaller serving sizes. Instead of bottling its own drinks, Coca-Cola mainly sells its concentrates and syrups to independent bottlers that produce and distribute the finished products. That asset-light business model enables it to maintain high margins and generate ample cash to fund its dividends.
Altria has also been diversifying its business away from cigarettes, which include the top-selling Marlboro brand, by selling more smoke-free products. It expects those products -- which include e-cigarettes, nicotine pouches, and snus -- to bring in at least $5 billion in revenue (nearly a quarter of its projected sales) by 2028. It also constantly raises its cigarette prices to offset its declining volumes, and it's cutting costs and buying back more shares to boost its EPS.
From 2025 to 2028, analysts expect Coca-Cola's EPS to grow at a 7% CAGR, and for Altria's EPS to increase at a 13% CAGR. Coca-Cola still looks reasonably valued at 25 times next year's earnings, while Altria looks even cheaper with a forward price-to-earnings ratio of 12.
Coca-Cola pays a forward yield of 2.4%, and its low trailing payout ratio of 62% gives it plenty of room for future hikes. Altria, which has a payout ratio of 89%, pays a forward yield of 6.5%. Both stocks should hold up well against inflation, rate hikes, and other macro headwinds.
But avoid PepsiCo
PepsiCo might seem similar to Coca-Cola, but it operates a completely different business model. It owns a diverse portfolio of beverages, but it bottles and distributes a large portion of its own drinks. It also sells packaged foods through Frito-Lay, Quaker, and other subsidiaries.
That fragmented business model has several glaring weaknesses. By bottling its own drinks rather than simply selling syrups, PepsiCo's beverage business incurs higher capital expenses than Coca-Cola. Meanwhile, its packaged foods business is struggling with stiff competition from healthier and private label brands, the impact of inflation on its margins and pricing power, as well as shifting health trends and the increased usage of GLP-1 weight loss drugs. A series of major recalls (especially at Quaker Foods) exacerbated that pressure.
All of these challenges throttled the growth of PepsiCo's North American business, which accounts for over half of its operating profits, and offset its stronger overseas growth.
From 2025 to 2028, analysts expect PepsiCo's EPS to grow at a 14% CAGR as it resolves those issues, yet its stock trades at just 15 times forward earnings. It pays a high forward dividend yield of 4.6%, which is supported by a stable trailing payout ratio of 75%.
PepsiCo might seem like an attractive dividend play at these levels. Still, its asset-heavy beverage business and heavy dependence on packaged foods make it a much weaker investment than Coca-Cola or Altria in this choppy market.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
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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.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Dividend Kings to Buy Now and 1 to Avoid Despite the Yield

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $131.4 million dollar outflow -- that's a 0.9% decrease week over week (from 528,150,000 to 523,550,000). Among the largest underlying components of HDV, in trading today Altria Group Inc (Symbol: MO) is up about 1%, Blackstone Inc (Symbol: BX) is down about 3.4%, and Duke Energy Corp (Symbol: DUK) is lower by about 1.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $23.515 per share, with $30.125 as the 52 week high point — that compares with a last trade of $28.64. 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 HDV Research:

Noteworthy ETF Outflows: HDV, MO, BX, DUK

An updated edition of the July 31, 2026, article.
Sin stocks occupy a distinctive corner of the equity market, representing companies tied to products or activities that some investors consider ethically or socially controversial. These businesses often operate in areas such as alcohol, tobacco, gambling and defense. Because demand for many of their products can remain resilient across economic cycles, sin stocks are often viewed differently from conventional investments, with returns shaped by regulation, consumer behavior, cash generation and investor sentiment.
What Are Sin Stocks?
Sin stocks are shares of companies whose primary businesses are associated with products or services that may raise ethical, social or health-related concerns. Tobacco, alcoholic beverages, gambling, firearms and certain defense-related businesses are commonly included in this category. Depending on the definition used, companies involved in areas such as cannabis or adult entertainment may also be considered sin stocks.
There is no separate “sin stock market.” These companies trade on regular stock exchanges alongside companies from other industries. The term groups them according to the nature of their businesses. Their share prices therefore move according to the same basic forces affecting other stocks, including earnings, cash flows, interest rates, valuation, competitive conditions and investor expectations. However, because many of their products enjoy steady demand regardless of economic cycles, sin stocks are often considered relatively defensive investments.
The economics of many sin-stock businesses can be distinctive. Established brands, recurring consumption and high barriers to entry can support relatively steady revenues. At the same time, these companies often face higher taxes, advertising restrictions, regulatory scrutiny, litigation risks and changing social attitudes.
Why Invest in Sin Stocks?
One reason investors consider sin stocks is the potential resilience of demand. Consumption of products such as tobacco, alcohol and gaming services may not move as sharply with economic conditions as spending on many discretionary products. This can provide some stability when broader economic growth slows.
Many established sin-stock companies also generate a significant cash flow. Mature businesses often have relatively limited requirements for rapid expansion, allowing more cash to be directed toward dividends, share repurchases or debt reduction. This can make income generation important part of the investment case.
Valuation can also play a role. Some institutional investors and environmental, social and governance (ESG)-focused funds exclude controversial industries from their portfolios. Reduced investor participation can sometimes leave sin stocks trading at lower valuations than businesses with comparable financial characteristics. That does not automatically make them undervalued, however, because lower valuations may also reflect genuine regulatory, legal or long-term demand risks.
How Is Sin Stock Investing Different?
Sin-stock investing differs mainly in the additional factors investors must consider alongside conventional financial analysis. Revenue growth, margins, balance-sheet strength, free cash flow and valuation remain important, but regulatory and social risks can have an unusually large influence on these businesses.
Government policies can affect product pricing, taxation, advertising, distribution and operating costs. Tobacco companies, for example, may face excise-tax increases and restrictions on product marketing, while gambling companies can be heavily dependent on licensing rules and local regulations. Legal liabilities can also create substantial costs.
Investor perception is another important difference. ESG mandates may prevent certain funds from owning sin stocks regardless of their financial performance. This can affect demand for the shares and influence valuation multiples.
As a result, investing in sin stocks is not simply about buying companies with controversial businesses. It involves assessing whether durable demand, cash generation, competitive advantages and shareholder returns adequately compensate for regulatory, legal, reputational and structural risks. Like any investment strategy, the focus ultimately remains on the relationship between business fundamentals, valuation and risks.
Trends in Sin Stock Sectors
Sin stock sectors are evolving as changing consumer habits, regulation and technology reshape traditional business models. Tobacco companies like Altria Group, Inc. MO are increasingly shifting toward smoke-free products, including heated tobacco and nicotine alternatives, as cigarette volumes decline in many developed markets.
Alcohol companies, including Molson Coors Beverage Company TAP, are balancing premium brands with growing demand for low- and no-alcohol beverages. Gambling is benefiting from the expansion of online betting, mobile platforms and legalized sports wagering in more markets.
Defense companies are seeing sustained demand amid elevated global security concerns and increased military spending. Cannabis businesses continue to face uneven legalization, regulatory complexity and profitability challenges.
Across these sectors, companies are focusing on product innovation, digital engagement, cost efficiency and portfolio diversification. However, regulatory changes, taxation, litigation risks and shifting social preferences remain important factors shaping long-term performance.
If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Diageo Plc DEO, Philip Morris International Inc. PM and Churchill Downs Incorporated CHDN.
Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
Diageo is supported by a powerful global brand portfolio, broad geographic reach and continued investment in innovation. Its leading brands, including Johnnie Walker, Guinness, Don Julio and Smirnoff, provide a strong platform for premiumization, pricing and distribution expansion. The company is targeting evolving consumer preferences through ready-to-drink products, low/no-alcohol offerings and more accessible formats. Geographic diversification remains an important strength, with growth in Europe, Latin America, Africa and India helping offset weakness in North America and China.
Diageo is also pursuing a leaner operating model through restructuring, supply-chain improvements and tighter overhead management. In the medium term, the Zacks Rank #2 (Buy) company’s sales growth is expected to improve as North America stabilizes, while cost savings and better mix should support operating profit growth, cash generation and greater financial flexibility. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Philip Morris is strengthening its long-term growth profile through a continued shift toward smoke-free products, supported by IQOS, ZYN and VEEV. Smoke-free products now contribute a substantial portion to revenues, while the company aims to become majority smoke-free by 2030. Its strategy centers on expanding reduced-risk products, entering additional markets, leveraging Swedish Match and the KT&G partnership, and using productivity savings to fund innovation and commercial investments.
Philip Morris maintains a leading position in heat-not-burn through IQOS, while ZYN and VEEV are broadening its presence across nicotine categories and geographies. Strong pricing, favorable product mix and scale benefits should support the Zacks Rank #3 (Hold) company’s revenues, margins and earnings, although declining cigarette volumes, regulatory pressure and U.S. execution risks remain key challenges.
Churchill Downs is building on its leadership in horse racing and gaming through continued investment in premium racing experiences, historical racing machines, regional casinos and wagering services. The Kentucky Derby remains a powerful flagship asset, supported by record wagering, viewership and sponsorship momentum, while the company’s broader racing and gaming operations provide diversified earnings streams. Churchill Downs is expanding its venue base through projects such as Victory Run at Churchill Downs Racetrack and the Rockingham Grand Casino in New Hampshire, supporting future capacity and revenue growth.
Churchill Downs’ strategy centers on developing and acquiring racing and gaming properties, expanding online wagering capabilities, and leveraging established regional positions. Continued growth across Live and Historical Racing, Wagering Services and Gaming, combined with disciplined development spending, should support the Zacks Rank #3 company’s long-term earnings expansion and cash generation.
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Sin Stock Investing: Finding Opportunities in Controversial Industries

Altria Group, Inc. MO is seeing nicotine pouches take a much larger role in the U.S. oral tobacco market as the category continues to shift toward this format. In the second quarter of 2026, the overall nicotine pouch category accounted for 59.9% of the oral tobacco category, up 8.1 percentage points year over year and 1.8 points sequentially. Total oral industry volume was estimated to have increased 6% in the first half, primarily driven by oral nicotine pouch growth.
Within this expanding category, Altria’s on! brand improved its position during the quarter. Its share of the total oral tobacco category reached 8.6%, up 0.3 percentage points year over year and 0.8 points sequentially. MO’s share of the nicotine pouch category was 14.4%, down 1.7 points year over year but up 1 point sequentially.
Shipment trends were mixed. on! reported second-quarter volume of 49.9 million cans, down 4.2% from a year earlier due to trade inventory movements. First-half volume, however, rose 5.1% to 96.1 million cans as on! PLUS expanded nationally. Estimated retail takeaway volume increased to 47.2 million cans in the second quarter from 40.8 million in the first quarter.
At the same time, the expansion has come with higher investment. on! PLUS reached 120,000 stores nationwide, supported by introductory trial offers and broader promotional activity. These efforts reflect Altria’s ongoing push to strengthen the brand’s presence as nicotine pouches continue to account for a larger share of the oral tobacco category.
MO Faces Competition in the Growing Nicotine Pouch Market
Philip Morris International Inc. PM is also active in the expanding U.S. nicotine pouch category through ZYN. In the second quarter of 2026, Philip Morris reported ZYN U.S. shipments of 2.9 billion pouches, up 1.8% year over year, while ZYN retained around 57% retail value share. Philip Morris also broadened the portfolio with ZYN ULTRA and additional strength and flavor variants.
Turning Point Brands, Inc. TPB is also benefiting from the shift toward nicotine pouches through its Modern Oral portfolio. With Modern Oral reaching 48% of Turning Point Brands’ net sales, the category reported $68.4 million in second-quarter 2026, up 128% year over year. Turning Point Brands is also investing in retail distribution, sales capabilities and brand building for FRE and ALP.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 6.5% in the past six months compared with the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.82X, down from the industry’s average of 15.05X.
Image Source: Zacks Investment Research
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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Can Altria's on! Build Share as Nicotine Pouches Keep Growing?

Key Points
As a Dividend King, Altria Group has a long history of raising dividends.
Reinvesting your dividends helps you reach the full potential of compound interest.
People often talk about a company's dividend in terms of the dollar amount or yield. That's important, along with checking its cash flow and earnings to see if the company can afford the payments.
But it's also interesting to see how much cash your stock investment will generate over time. Altria Group (NYSE: MO) raised its dividend last month, marking the 61st increase in 57 years. That makes the company a Dividend King, a group of companies that have raised payouts for at least 50 straight years.
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By making a few assumptions, let's see how much income investors could receive by making a small $150 monthly investment in Altria Group over the next decade.
The company hiked its quarterly dividend by 4.7% to $1.11 per share, in line with its targeted mid-single-digit percentage increase through 2028. Using that assumption seems like a good place to start.
Assuming a flat share price, reinvesting dividends into additional shares, and a 4% annual increase over 10 years, investors would receive $8,675 in dividends. What if Altria Group's board of directors raises dividends by 6% a year? You'd have $10,160.
Of course, it's also useful to look at more conservative scenarios. If the company increased payouts by a modest 2% annually, you'd have received $7,430.
What if you don't reinvest the dividends? Your monthly investment, assuming a 6% annual increase, would provide $7,883 in total dividends. And at the low end, a 2% increase in dividends would give you $6,072.
Investors should note that these calculations don't take taxes into account. Your tax rate depends on your situation, but if you own Altria Group's shares in a taxable brokerage account, you'll likely have a lower after-tax amount.
Should you buy stock in Altria Group right now?
Before you buy stock in Altria Group, consider this:
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Lawrence Rothman, CFA 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.

If You Invest $150 Per Month in Altria Group Stock, Here's the Passive Dividend Income It Could Generate Over 10 Years

Key Points
Altria pays the highest yield of the three, backed mainly by pricing power even as cigarette volumes keep falling.
Verizon's dividend is well covered by growing free cash flow, though its heavy debt load remains a concern.
Realty Income's monthly dividend is supported by high occupancy and a conservative 75% payout ratio.
High-yield dividend stocks can look tempting, but a big yield sometimes signals that investors expect weaker earnings or even a dividend cut. That makes the cash behind the payout more important than the yield itself. Still, three names stand out this month: Altria (NYSE: MO), Verizon (NYSE: VZ), and Realty Income (NYSE: O), each of which yields more than 5%, but each funds its dividend differently.
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Here's what each company has in store for a dividend portfolio and why I'd buy either without hesitation.
Altria pays the biggest dividend yield of the three
Altria offers the biggest payout of the three, with a yield of 6.4%. It raised its dividend by 4.7% this quarter, marking its 61st increase during the past 57 years. That makes the new annual dividend $4.44 a share, or about 79% of the company's 2026 adjusted earnings-per-share (EPS) forecast.
The engine behind Altria's dividend is pricing power. Second-quarter adjusted EPS rose 2.8%, and net operating income from smokeable products increased 2.4% thanks to higher prices offsetting fewer cigarette shipments. To counter this, Altria hopes its portfolio of smoke-free products will carry more of the load.
Although Altria offers the highest yield of the three, it also carries the most long-term business risk.
Verizon backs its dividend with strong free cash flow
Verizon earns its income from broadband and wireless customers, giving it a predictable monthly cash flow.
Operating cash flow rose 9.9% in the first half of 2026, while free cash flow (FCF) climbed 16%. Management expects FCF to grow 9% to 10% this year. For context, Verizon paid roughly $11.5 billion in dividends last year, against about $20 billion in free cash flow, leaving significant room for future increases.
The bigger concern is the balance sheet. Net unsecured debt is a whopping $129 billion.
Even so, at a 5.4% yield, the dividend is backed by growing free cash flow, plus 20 straight years of dividend increases, all of which make it a solid case for income investors.
Realty Income offers reliable monthly dividend income
Realty Income earns rental income rather than cash flow from tobacco or telecom. The real estate investment trust (REIT) owned or held stakes in more than 15,000 properties as of June 2026, with almost 99% occupancy and an average lease term of about 8.6 years.
Unlike typical dividend stocks, REITs use adjusted funds from operations (AFFO) as the basis for dividend payouts. And right now, Realty Income uses just 75% of its AFFO to cover its monthly dividend payments, which have an annual yield of 5.6%. That, along with a long history of paying and raising monthly dividends, gives investors a fuller track record against which to judge coverage.
There is a trade-off, though. Realty Income relies on debt and equity to fund acquisitions, and higher financing costs can pressure future returns. Still, the company put about $2.6 billion to work during the quarter at a 7.3% cash yield, expanded its credit facility to $5.5 billion, and holds an A credit rating from Fitch.
The company's long record of dividend payments makes it appealing to investors seeking monthly income they can look forward to for years.
What these three high-yield dividend picks mean for investors
Right now, these three high-yield dividend stocks are some of the best investors can get this September. They also fit a wide range of investment cases. Altria is the classic high-risk, high-reward play. Verizon offers balance. Realty Income gives you a monthly paycheck so reliable that you can set your watch to it. Take your pick or get them all, but with cash flow backing each payout, I wouldn't hesitate to buy any of them this September.
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Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

3 High-Yield Dividend Stocks I'd Buy in September With No Hesitation

Altria Group, Inc. MO is currently trading at a compelling discount to the industry, sector and the broader market, positioning it as a potential value opportunity for long-term investors. The stock’s forward 12-month price-to-earnings (P/E) ratio stands at 12.1. This is below the Tobacco industry’s average of 15.47, the Consumer Staples sector’s 16.95 and the S&P 500’s 19.65.
MO P/E Ratio (Forward 12 Months)
When measured against leading competitors, Philip Morris International Inc. PM, Turning Point Brands, Inc. TPB and British American Tobacco p.l.c. BTI, Altria’s relative valuation presents a mixed picture. Philip Morris and Turning Point Brands trade at higher multiples of 21.43x and 30.60x, respectively, while British American Tobacco trades at a lower multiple of 10.98x.
In terms of share performance, Altria has gained 9.6% over the past month, outperforming both the industry and the sector, which advanced 5.1% and 0.9%, respectively, over the same period. In comparison, the S&P 500 declined 1.8%. Among its peers, Altria also outperformed Philip Morris and British American Tobacco, which gained 3.9% and 0.7%, respectively. Turning Point Brands declined 17.8% at the same period.
MO Stock Past Month Performance
Technical indicators highlight Altria’s strength, with the stock last trading at $70.10, above its 50-day and 200-day moving averages of $68.29 and $64.60, respectively, signaling solid upward momentum. This technical setup points to positive sentiment surrounding the stock.
MO Stock Trades Above 50-Day & 200-Day Moving Averages
So far, Altria’s attractive valuation, steady stock performance and supportive technical indicators underscore its market appeal. To fully grasp what is driving this momentum and assess the long-term potential, it is critical to examine Altria’s underlying fundamentals, where earnings resilience, portfolio diversification and strategic growth initiatives become evident.
Altria: Strength Built on Pricing and Portfolio Strategy
Altria continues to demonstrate earnings resilience through disciplined pricing and strong execution. In the second quarter of 2026, adjusted EPS increased 2.8% year over year to $1.48, while first-half adjusted EPS rose 4.9% to $2.80. Smokeable products remained a key earnings contributor, with higher pricing helping offset lower shipment volumes and increased promotional investments. This ability to protect profitability amid volume pressure remains an important strength.
Altria is strengthening its smoke-free portfolio, with on! PLUS showing encouraging early traction. In the second quarter, on!’s share of the overall oral tobacco category increased both sequentially and year over year, although its share within the nicotine-pouch category remained below the prior-year level. Helix expanded on! PLUS to 120,000 stores nationwide and resumed shipments of the 12-milligram product in select states. The company plans a national expansion of the 12-milligram on! PLUS offering, followed by additional flavors across multiple nicotine strengths. Management believes these initiatives can broaden on!’s consumer appeal and strengthen its position in the nicotine-pouch category.
At the same time, Altria is using a data-driven, total-portfolio approach to strengthen its traditional tobacco business. Marlboro Cowboy Cut generated strong interest among premium smokers, while Basic continued to gain traction in the discount segment during the second quarter. This strategy allows Altria to address different consumer preferences while using pricing and portfolio management to support smokeable products’ profitability despite declining cigarette volumes.
What Could Weigh on MO’s Growth?
Altria continues to face pressure from declining cigarette volumes, which remains a key challenge for its traditional tobacco business. In the second quarter of 2026, domestic cigarette shipment volume declined 3.2% year over year, while inventory-adjusted volume fell an estimated 4.5%. Higher pricing helped offset some of the volume weakness, but increased promotional investments and a greater mix of discount shipments also weighed on performance.
The oral tobacco business is another area of concern. Second-quarter net revenues in the segment declined 5.3%, while adjusted OCI fell 8%. Shipment volume decreased 8.5% due to retail share losses and trade inventory movements, partially offset by industry growth. This weakness highlights the challenge of transitioning the portfolio toward smoke-free products while maintaining profitability across the broader oral tobacco business.
Altria Witnessing Downward Estimate Revision
Reflecting cautious sentiment around Altria, the Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 60 days, the EPS estimate for 2026 and 2027 fell 3 cents each to $5.67 and $5.84, respectively.
What Is the Right Investment Strategy for MO?
Altria’s attractive valuation, resilient earnings and strong pricing power remain key positives. Progress with on! PLUS and disciplined portfolio management also provide avenues for longer-term growth. However, persistent cigarette-volume declines, weakness in oral tobacco and downward estimate revisions temper the near-term outlook. With the stock already showing strong price momentum, further upside may depend on stronger operating trends and a recovery in earnings expectations. Existing investors may consider holding their positions, while prospective investors could wait for a more favorable entry point. 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 Group, Inc.

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