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Altria Boosts Dividend: Is Cash Flow Enough?
4 Sep
Summary
- Altria's quarterly dividend increased to $1.11, yielding 6.4%.
- Fiscal 2025 operating cash flow of $9.29 billion covers payouts.
- Cigarette volumes declined 10% in 2025, impacting the scorecard.
Altria has announced a quarterly dividend of $1.11 per share, an increase from its previous rate. This move, with an ex-dividend date of September 15, 2026, pushes the annualized forward payout to $4.44. Based on a share price of $69.85, the forward yield is approximately 6.4%. The company's financial performance supports this payout, as fiscal 2025 operating cash flow stood at $9.29 billion against dividend payments of $6.96 billion.
Despite the dividend increase, Altria's scorecard shows a 'B' rating. This is attributed to a 10% drop in cigarette volumes in 2025 and $2.2 billion in impairments related to NJOY. Nevertheless, the core smokable business remains a strong cash generator, with healthy adjusted smokable OCI margins and stable Marlboro premium share. Debt levels are also within management's target range.
