JRNY - Altria: Stable Q1 Even As Macro Worsened; 6.6% Dividend Yield

• Altria reported solid Q1 2022 results, with continuing earnings stability despite inflation, higher oil prices, and other macro pressures.
• Adjusted EPS grew 4.7% year-on-year, driven by growth in the core Smokeables segment and helped by share repurchases.
• Cigarette volume fell 8% on an adjusted basis, in line with Q4 2021 and against a strong prior-year quarter when it fell only 3.5%.
• The Oral Tobacco business is declining, but more than offset by Smokeables growth. The proposed FDA menthol ban is not a threat.
• With shares at $54.92, we expect a total return of 53% (14.1% annualized) by 2025 year-end. The Dividend Yield is 6.6%. Buy.

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