MO - Can NJOY Help Propel Altria Group Stock Higher?

2024-06-29 18:20:00 ET

Income-oriented investors tend to be attracted to Altria Group (NYSE: MO) due to its high yield of 8.6% and long history of increasing its dividend every year since 2009. However, revenue growth has been difficult to come by for the company, with sales down each of the past two years as well as the first quarter of this year.

That could be about to change, though, with more growth set to come from Altria's NJOY business following a recent positive announcement from the U.S. Food and Drug Administration (FDA).

While the FDA is more known for taking a tough stand on tobacco products, especially any flavored products, Altria received good news recently when the government agency authorized the sale of four menthol e-cigarettes from NJOY. Two of the products --NJOY's ace pod menthol 2.4% and ace pod menthol 5% -- are refillable pod products that work with its ace vaping device. In addition, two disposable e-cigarette products, the NJOY daily menthol 4.5% and NJOY daily extra menthol 6%, were also authorized.

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