Known in some circles, including this one, as the mighty MO, tobacco company Altria Group Inc. (NYSE: MO | MO Price Prediction) posted solid earnings yesterday. Its stock has increased 12% year to date, and yesterday, it rose yet again. The stock market is down 6% over the same period.
Altria boasts a yield of 6.9% and a rock-solid balance sheet. It has been one of the best dividend stocks over the past half-century. It has raised the dividend 59 times in the past 50 years, which makes it one of the market’s Dividend Kings.
In the first quarter of 2025, Altria repurchased 5.7 million shares at an average price of $56.97, for a total cost of $326 million.
Altria’s quarterly figures beat Wall Street’s consensus estimate. The company reaffirmed its full-year guidance in a year when companies have pulled guidance because of trade wars.
Revenue dropped 5% in the period to $5.2 billion. Per-share earnings fell 48% to $0.63. At the end of the quarter, Altria had $4.7 billion of cash on the balance sheet. It also holds a stake in Anheuser Busch.
Altria relies on one of the world’s most recognizable brands, Marlboro. Billy Gifford, Altria’s chief executive officer, said, “The smokeable products segment delivered solid adjusted operating companies income growth behind the strength of Marlboro.” Marlboro delivered 14 million smokable shipments in the quarter, about 90% of the unit’s sales. Billy continues to captain the ship well.
There is a theory that Altria’s high dividend attracts people who are uncomfortable with its primary business being cigarettes. Many investors looking for yield have chosen to ignore that. Whatever aversion there is, it is not reflected in the share price.
Sail on, Might MO, Sail on.
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