Key Points
- Altria purchase of vape maker NJOY gives it access to a massive distribution network.
- Marlboro remains a giant in the U.S. cigarette industry with 42% of the market share.
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Shares ofAltria Group Inc. (NYSE: MO) lost 1.47% over the past month after gaining 7.36% the month prior. So far in 2025, the Dividend King isn’t just outpacing its the S&P 500 with a 25.02% gain, it’s continuing to reward shareholders with a dividend currently yielding 6.45%. The company has now increased its distribution 59 times over the past 55 years.
When the company reported Q2 earnings on July 30, it announced EPS of $1.44, beating analysts’ expectations of $1.37. The company also saw quarterly revenue of $5.29 billion. Forward guidance was strong, with Altria expecting earnings to grow 4.14% next year.
Among iconic American brands, Altria’s Marlboro cigarettes are as recognizable as iPhones, Levi Jeans and Coca-Cola. While the company’s origins can be traced back to George Weyman’s tobacco shop in 1822, Altria filed its first annual report as Philip Morris in 1920 and would come to dominate U.S. tobacco throughout the 20th century and beyond. As Philip Morris branched out to acquire General Foods and Kraft, among others, it changed its name in 2003 to Altria Group while retaining the “MO” ticker.
Altria has continued to grow at an albeit slower pace, due to health risks associated with tobacco use that has caused legislative restrictions. However, as a Dividend King and an institutional investment favorite, the company remains historically reliable and, as evidenced by its performance so far in 2025, more than capable of weathering severe market downturns.
Loading stock data...Altria’s Recent Stock Success
In 2016, Altria acquired 10% ofAnheuser Busch InBev NV ADR (NYSE: BUD), the maker of Budweiser beer. The company has since reduced its stake to 8%, but the initial investment marked a run of M&A activity that increased CapEx but intrinsically increased the company’s valuation. Sherman Group Holdings, LLC was purchased in 2018, followed by Helix Innovations and Cronos Group — a medical and recreational cannabis company — being added to the Altria portfolio in 2019. In 2023, the company acquired NJOY.
| Fiscal Year | Price | Revenues | Net Income |
| 2015 | $58.21 | $18.854 B | $5.241 B |
| 2016 | $67.62 | $19.337 B | $14.239 B |
| 2017 | $71.41 | $19.494 B | $10.222 B |
| 2018 | $49.39 | $19.627 B | $6.963 B |
| 2019 | $49.91 | $19.796 B | (-$1.239 B) |
| 2020 | $41.00 | $20.841 B | $4.467 B |
| 2021 | $47.39 | $21.111 B | $2.475 B |
| 2022 | $45.71 | $20.688 B | $5.764 B |
| 2023 | $40.34 | $20.502 B | $8.130 B |
| 2024 | $52.38 | $24.018 B | $11.236 B |
From FY 2020 to FY 2024, Altria returned more than $32 billion to shareholders in the form of dividends. Over the same period, it was able to repurchase $7.9 billion worth of stock. And from August 2023 to August 2024, the company increased its dividend by more than 4.1%.
Key Drivers for Altria’s Stock in the Future
1. Growing Demand for Smokeless Products:Globally, the smokeless product industry is valued at $16.81 billion and is projected to undergo a compound annual growth rate (CAGR) of 4.8% from 2024 to 2030. While 84.9% of distribution is offline, online distribution is forecast for a 6.2% CAGR through 2030, which is likely to help bolster sales as these products continue to expand their global reach. NJOY achieved the first-ever FDA marketing granted orders for menthol e-vapor products.
2. ContinuousDividend Growth:Last year, Altria notched its 55th consecutive year of dividend growth. The stock continues to be a favorite among income investors, and it currently pays a dividend yielding 6.87%. For context, yield-investing fan favoriteSchwab U.S. Dividend Equity ETF (NYSE: SCHD)currently only pays 4.04% and has seen a year-to-date loss of 4.81%. As such, Altria continues to provide investors with a safe haven, alluring (and sustainable) yield and impressive share performance.
3. Emerging Markets:Cronos (cannabinoid) and Helix (oral nicotine pouches) were both acquired in 2019 and should help Altria expand into those respective markets. This is particularly relevant in light of the FDA announcing in January 2025 that it has authorized marketing of 20 ZYN Nicotine Pouch Products — a major competitor — following an extensive scientific review.
Altria (MO) Price Prediction for 2025
According to Wall Street analysts, the current consensus one-year price target for Altria Group is $63.00, which represents potential downside of 4.03% over the next 12 months based on the current share price. Of the 10 analysts covering MO, the stock is given a consensus “Hold” rating, with four assigning a “Buy” rating, four assigning a “Hold” rating and two assigning a “Sell” rating.
On the other hand,24/7 Wall St.‘s year-end price target for Altria Group of $57.27, or 12.76% potential downside from the stock’s current price. We believe that Altria’s high dividend and relatively low P/E ratio will continue to attract investors, which will in turn support the stock price amid the ongoing downturn in the broad market.
Altria Stock Price Target 2025–2030
By the conclusion of 2030,24/7 Wall St.estimates that Altria’s stock will be trading for $65.15, or 0.76% lower than today’s share price, based on an EPS of $6.05.
| Year | EPS | Price Target | %Change From Current Price |
| 2025 | $5.32 | $57.27 | -12.76% |
| 2026 | $5.50 | $59.24 | -9.76% |
| 2027 | $5.67 | $61.06 | -6.99% |
| 2028 | $5.77 | $62.10 | -5.40% |
| 2029 | $5.90 | $63.55 | -3.19% |
| 2030 | $6.05 | $65.15 | -0.76% |
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