Only a few investors have heard of Altria Group Inc. (NYSE: MO). However, the company’s engine is its famous brand, Marlboro. The stock has a forward yield of 7.1%. It is very likely to keep its current dividend or perhaps raise it. Altria has strong cash flow and an ironclad balance sheet.
Altria is not a trader’s stock. It is up 9% this year, compared to a 3% drop in the S&P 500. Its trading range is narrow. The stock has changed hands over the past 52 weeks between $60.18 and $40.65 a share. It trades near $57 today.
Altria has solid earnings, an ironclad balance sheet, and 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 20 years.
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.
The stock market has turned dangerous. President Trump put 10% tariffs on imports from all countries. In the case of several trading partners, the figure is high. The number is 34% for China and 25% for both South Korea and the European Union.
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. Investors need to find safe havens. Altria should be at the top of the list.
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