What is Altria's main product?

Altria's main product is smokable tobacco, primarily cigarettes, which accounts for 88% of its revenue.

Why are Altria's cigarette volumes declining?

Cigarette volumes for Altria are declining due to changing consumer preferences and increased awareness of health risks.

How is Altria's adjusted earnings increasing despite falling revenue?

Altria's adjusted earnings are increasing due to share buyback programs, which offset the decline in revenue from cigarette sales.

Home / Business and Economy / Altria's Dividend: A Risky Bet?

Altria's Dividend: A Risky Bet?

7 Dec

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Summary

Smokable tobacco accounts for 88% of Altria's revenue.
Cigarette volumes declined by 8% in Q3 2025.
Adjusted earnings rose despite falling revenue in Q3 2025.

While Altria (NYSE: MO) initially appears attractive due to its substantial 7.2% dividend yield and consistent payout increases, a deeper examination of its core business reveals potential risks. The company's primary revenue stream, smokable tobacco products, constitutes a significant 88% of its total income.

This segment, however, is in a pronounced decline. In the third quarter of 2025, cigarette volumes dropped by 8%, continuing a trend of double-digit percentage decreases in prior periods. This persistent downward trajectory is a critical warning sign for investors, especially given that tobacco is not a true necessity but rather a product driven by addiction.

Despite falling revenues, which decreased by 3% in Q3 2025, Altria has managed to report an increase in adjusted earnings. This discrepancy is largely attributed to the company's share buyback programs, masking the underlying issues within its core smokable products business.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.