People still smoke cigarettes. About 30 million Americans do. It kills 500,000 people a year in the US. A pack of cigarettes costs about $14. But people keep on smoking. That positions Altria (NYSE: MO | MO Price Prediction), the largest tobacco company in America, in a market that is unlikely to change. It has a huge, almost fixed number of customers. And it has recently upped its dividend for the 59th time in 55 years.
To make matters better, in January, management announced, “We completed our previously authorized $3.4 billion share repurchase program.” The company said it would begin a new $1 billion share repurchase that it expects to happen by the end of this year.
Altria has one other advantage during what has become a stock market roller coaster. People have looked for a company with a rock-solid balance sheet. The demand for safety this year drove Altria stock up 11% in 2025, while the SP&P 500 is down 2%.
As 25% tariffs were announced on Canadian and Mexican imports (maybe so, maybe not) and a 10% tariff on Chinese imports, the stock market recently had its largest drop in 2025. Tariffs are expected to raise the prices of many imported goods sold in America. This robs people of their purchasing power and, in turn, could trigger a recession.
While investor anxiety soars, Altria has a yield of 7.1%.
In 2024, Altria’s revenue fell 2% to $24 billion. However, earnings rose 42.1% to $6.54 a share.
Almost all of Altria’s revenue comes from cigarettes. There is a theory that many investors shy away from buying Altria stock for that reason and that the dividend is an incentive.
Almost all of Altria’s cigarette sales are from the Marlboro brand. The brand was first marketed in 1924 and targeted toward women. In the 1950s, the target changed to men.
At the end of 2024, Altria had $11.3 billion of cash and cash equivalents and long-term investments. It also raised its 2025 guidance.
While tariffs and a potential recession may have rocked the market, Altria is a great safe haven.
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