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Altria Rises: Tobacco Stock Defies Decline
29 Oct
Summary
- Altria stock has outperformed the S&P 500 in 2026.
- The company raises its dividend for the 61st time.
- Q3 earnings report expected before market open October 29.
Altria Group (MO) demonstrates significant resilience, outperforming market benchmarks in 2026 due to its defensive cash flows and attractive dividend. The company's strategy involves raising cigarette prices, cutting costs, and repurchasing shares, while also expanding its smoke-free alternatives like NJOY e-cigarettes and on! nicotine pouches.
Investors are drawn to Altria's strong dividend history; it recently paid a quarterly dividend of $1.11 per share, up 4.7%, with an annualized dividend of $4.44 per share yielding 5.97%. This marks its 61st dividend increase in 57 years, earning it 'Dividend King' status.
In its second quarter, Altria reported flat net revenues and a slight increase in revenues excluding excise taxes. Adjusted diluted earnings per share rose to $1.48, though slightly below analyst expectations. The smokeable products segment remained strong due to price hikes, countering decreased shipment volumes.
Altria raised its full-year 2026 adjusted diluted EPS guidance to between $5.61 and $5.72. The company's Q3 earnings are anticipated before market open on Thursday, October 29, with analysts holding a consensus 'Moderate Buy' rating on MO stock.
