Is This The Safest Stock During A War?

The markets are dropping. They did at the start of Russia’s invasion of Ukraine. They did at the start of the Gulf War (1990–1991) under President George H.W. Bush. They did at the start of the Iraq War (2003–2011) under President George W. Bush. How much do the markets go down, and for how long? Well, how long has the war been, and how violent has it been? How far does it spread?

Inflation is among the major troubles these wars trigger. Will the oil fields get bombed? Does the Strait of Hormuz get shut down, which also interrupts oil supply? That raises anxiety about CPI. The stock market hates inflation.

There are not many stocks that are little affected today, if any. However, safe-haven stocks may even rise due to demand. At the top of this list is Altria (NYSE: MO), the cigarette and tobacco king. People who smoke do not stop smoking, even during periods of conflict.

Altria hits with power from both sides of the plate. The stock is up 24% in the last year. The S&P is 16% higher. Its forward dividend and yield is 6.14%. That’s almost as good as a junk bond. But Altria has a rock-solid balance sheet.

And…Altria Group has raised its dividend for 56 to 60 consecutive years as of late 2025, solidifying its status as a “Dividend King”.

Altria offers several advantages to shareholders. For example, although fewer people smoke today than several decades ago, those who do smoke have not been deterred by the rising price of cigarettes. A pack of cigarettes costs about $10, depending on the state tax.

Altria owns Marlboro, the world’s most famous cigarette brand. Ninety percent of its cigarette sales come from Marlboro.

There is a trend toward smokeless tobacco products. Altria’s product line includes oral tobacco products. It owns the Copenhagen and Skoal brands.

In the most recent quarter, revenue fell 2% to $5.85 billion Adjusted EPS was $1.30.  Billy Gifford, Altria’s chief executive officer, said, “2025 was a year of continued momentum for Altria, marked by strong financial performance, strategic progress across our smoke-free portfolio, new relationships in support of our long-term growth goals and significant cash returns to shareholders.”

Some investors will not buy stock in a company that makes products that affect people’s health and can be deadly. Along with the cash flow, that may be why Altria has kept its dividend high and growing.