Is Altria Group Stock a Buy, Sell, or Hold in 2025?
The company's announcement that it was walking back its 2028 goals for smoke-free products warranted a closer look at its prospects.
Tobacco giant Altria Group (NYSE: MO), a traditionally slow and stodgy stock, saw its share price soar nearly 30% in 2024, and that increase doesn't include the stock's legendary, high-yield dividend (total return was 41%). The company, best known for selling Marlboro cigarettes in the United States, is has a solid following in the dividend investing community.
Smoking rates in the U.S. have declined for decades now. Altria sells fewer cigarettes yearly, but offsets the declines with price increases. This formula continues to pump out slow and steady earnings growth.
Should investors expect Altria's hot streak to continue in 2025? The company recently closed out 2024 with fourth-quarter earnings, including some significant updates that affected my investment thesis.
