Is Altria a Buy, Sell, or Hold in 2025?

From Yahoo Finance: 2025-04-21 12:15:00

Geopolitical uncertainty has shifted investor’s views on Altria (NYSE: MO) and its 7.2% dividend yield. Altria’s main product is cigarettes, addictive and bought regularly. It’s resilient during tough times, and its high dividend yield attracts income-focused investors. However, declining cigarette volumes pose long-term challenges for the company.

Altria has been raising prices to support dividend growth since 2009, maintaining a 7.2% dividend yield. While it’s a solid investment in the near term, long-term trends show declining cigarette volumes. Altria’s attempts to diversify into vaping and marijuana have faced challenges, making it less appealing compared to other high-yield stocks like Enterprise Products Partners and Enbridge.

Despite its high yield and resilience in the current geopolitical climate, Altria’s declining cigarette volumes are a cause for concern. While it could be a safe investment for now, long-term trends suggest dividend investors might find better options elsewhere. Monitoring Altria closely is crucial for potential investors.

The Motley Fool Stock Advisor team has identified 10 top stocks for investment, with Altria not making the cut. The recommended stocks have the potential for significant returns. The team’s average return significantly outperforms the S&P 500, offering valuable insights for investors looking for growth opportunities.

Read more: Is Altria a Buy, Sell, or Hold in 2025?