Altria (NYSE: MO | MO Price Prediction) makes some of the world’s most dangerous products. Its stock has a yield of 7% and its shares have risen 21% in the last year, while the S&P 500 is 11% higher.
Altria makes cigarettes. They are the leading cause of preventable death in the US and kill about 480,000 Americans each year.
Altria has solid earnings, an ironclad balance sheet, and an almost unprecedented run of dividend payments. In 2024, Altria’s revenue fell 2% to $24 billion. However, earnings rose 42% to $6.54 a share. At the end of 2024, Altria had $11.3 billion of cash and cash equivalents and long-term investments. It also raised its 2025 guidance. And it has raised its dividend every year for the last 55 years. That qualifies it as a Dividend King.
Almost all of Altria’s revenue comes from cigarettes. There is a theory that many investors shy away from buying Altria stock for that reason, but that the dividend is a huge incentive.
Almost all of Altria’s cigarette sales are from the Marlboro brand. The brand was first marketed in 1924 and targeted toward women. In the 1950s, the target changed to men.
There is another reason to invest in Altria. That is the potential danger to the global economy. People won’t cut back on cigarette smoking in most cases. Altria’s dividend won’t go away.
The stock market has turned dangerous, according to people who think it has hit a top. President Trump has threatened to put high tariffs on imports from several large nations, which could run up US inflation. His latest threat is a tariff level of 30% on Mexican imports. Mexico is second only to Canada in terms of trade dollars.
An increase in tariffs and the effects on inflation mean American consumers’ buying power will be hit. That, in turn, threatens GDP. Altria, under those circumstances, may be the best stock to own. That is, if people can ignore its business.
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