Altria was a safe income stock to buy, hold, and forget.
Altria was a safe income stock to buy, hold, and forget.
Altria (MO +1.72%), 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.
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.
$75.11+$1.27 (+1.72%)
NYSE · As of 4:00 PM ET 10/16/26
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.
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.
Averytin News Financial update.