PM - Altria: Potential Beyond Traditional Tobacco Products Makes It A Must-Own For Dividend Investors

2025-02-19 07:35:00 ET

Summary

• Altria's robust growth in smokeless products like NJOY and on! offsets the decline in smokeable products, making it a compelling dividend stock for passive income investors.
• Despite recent flat performance, Altria's solid earnings, strong balance sheet, and strategic buybacks enhance dividend safety and potential upside over the next 12–24 months.
• Altria's distribution network expansion and growth in e-vapor and oral nicotine categories position it well for future market share gains and revenue growth.
• Potential growth drivers like Ploom and Helix, along with a nearly 8% dividend yield, make Altria a long-term buy, despite current risks and pending lawsuits.
• The company's current pending decision regarding the sale of their NJOY ACE products could result in downside in the near term.

Introduction

Most of us are well aware of the risks from the consistent and steady decline in smokeable products. And while this will continue to pose a threat to Altria's ( MO ) dividend safety and peers alike, their robust growth in their smokeless products makes them a compelling dividend stock passive income investors should look to own.

Like every investment, owning a company at the right price is essential, and Altria, despite being up double-digits over the past year, could be poised to see further upside over the next 12–24 months due to additional growth drivers discussed later in the article....

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