Altria Group recently announced an increase in its quarterly dividend, increasing it by 3.9% to $1.06 per share. The increase brings the annual dividend to $4.24 per share, representing a significant dividend yield of approximately 6.3% based on the stock’s recent price. This is the company’s 60th dividend increase in the past 56 years, underscoring its long-term commitment to returning value to shareholders.
Payout Ratio Altria Group: The company’s payout ratio is around 78%, which is relatively high. This means a large portion of its earnings are distributed to shareholders as dividends. While this is great for income investors, a very high payout ratio can limit a company’s ability to reinvest in the business or weather economic downturns.
Altria Group Tobacco King Recent Stock Performance and Valuation
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- Current Price Altria Group: The stock’s price is approximately $66.41.
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- 52-Week Range Altria Group: The stock has traded between a low of around $48.87 and a high of $68.60 over the past year.
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- Performance Altria Group: Altria has had a strong year, with its stock performance significantly outpacing the broader S&P 500 index over the past year.
Altria Group Tobacco King Financial and Business Metrics
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- Market Capitalization: Altria’s market cap is approximately $111.58 billion.
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- P/E Ratio: The company’s P/E (price-to-earnings) ratio is around 12.85, which is often considered low compared to the broader market, suggesting some metrics may undervalue the stock.
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- Revenue: Altria’s trailing twelve-month (TTM) revenue is approximately $20.26 billion.
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- Earnings per Share (EPS): The TTM EPS is about $5.17.
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- Business Segments: The company operates primarily in the U.S. and has three main segments:
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- Smokeable Products: This includes cigarettes, with the flagship Marlboro brand, and cigars. This segment continues to face a long-term decline in volume.
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- Oral Tobacco Products: This includes moist smokeless tobacco and oral nicotine pouches, which are a key growth area for the company.
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- Wine: The company also has a wine segment, which it has been seeking to divest.
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- Business Segments: The company operates primarily in the U.S. and has three main segments:
Financial Performance and Dividend History
Altria is well-known for its consistent financial performance and commitment to shareholder returns. The company has a long history of paying dividends and is considered a “Dividend King,” a rare designation for companies that have increased their dividend for at least 50 consecutive years.
This consistent dividend growth is a key part of Altria’s strategy to deliver value to shareholders, even as the market for traditional cigarettes declines. The company aims to offset this decline through pricing power, cost management, and growth in its smoke-free portfolio.
Altria’s focus on its core business, along with its strategic investments in alternative products, positions it to continue generating long-term value for income-oriented investors.
Brands and Business Segments
Altria’s portfolio of companies and investments includes:
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Philip Morris USA: The company’s main subsidiary and the maker of leading cigarette brands like Marlboro, Parliament, and Virginia Slims.
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U.S. Smokeless Tobacco Company: Produces and markets smokeless tobacco products such as Copenhagen and Skoal.
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John Middleton: A manufacturer of machine-made cigars and pipe tobacco, including the popular brand Black & Mild.
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Helix Innovations: The company behind the oral nicotine pouch brand on!.
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NJOY: An e-vapor company acquired by Altria in 2023, whose products, including the NJOY ACE, are among the first e-vapor products to receive market authorization from the FDA for both tobacco and menthol variants.
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Equity Investments: Altria holds a significant equity interest in Anheuser-Busch InBev and a minority stake in the Canadian cannabis company Cronos Group.