As 25% tariffs were announced on Canadian and Mexican imports, as well as a 10% tariff on Chinese imports, the stock market had its largest drop in 2025. Tariffs are expected to raise the prices of many imported goods sold in America. This robs people of their purchasing power and, in turn, could trigger a recession. What investors need under these circumstances is a stock with a high, rock-solid dividend. And one that has posted a good price performance.
Among all stocks in the S&P 500. Altria Group Inc. (NYSE: MO | MO Price Prediction) has the highest yield at 7.21%. Its balance sheet is unusually strong, and it adds cash to the balance sheet every quarter. It has also bought back a large amount of its stock recently.
Altria’s shares are up 40% in the past year, while the S&P is only 13% higher. The company has raised its dividend 55 years in a row. In January, management announced, “We completed our previously authorized $3.4 billion share repurchase program.” Management said it would begin a new $1 billion share repurchase that it expects to happen by the end of this year.
In 2024, revenue at Altria fell 2% to $24 billion. However, earnings rose 42.1% to $6.54 a share.
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 and that the dividend is an 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.
Between cash and cash equivalents and long-term investments, Altria had $11.3 billion on its balance sheet at the end of 2024. It also raised its 2025 guidance.
While tariffs and a potential recession may have rocked the market, Altria is a great safe haven.
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