The global tobacco market is projected to hit $411.35 billion by 2025, with a 2.37% growth rate through 2029. Regulations tighten as the World Health Organization reports 6.1 billion people are covered by tobacco control measures. Altria Group increased its dividend to $1.06 per share, marking its 60th increase in 56 years, with a 6.3% yield.

Altria’s dividend strategy targets mid-single-digit growth through 2028, amid industry shifts toward reduced-risk products. With shares up 30% YTD, the stock remains fairly priced at a forward P/E ratio of 12.5x. Q2 2025 saw net revenues of $6.1 billion, with adjusted EPS rising 8.3% to $1.44.

Altria’s on! nicotine pouch brand is gaining traction, with shipments up 26.5% in Q2 2025. The company’s joint venture for heated tobacco devices could open new revenue streams. Altria’s dividend has increased for 57 consecutive years, with a 6.03% yield and a payout ratio just over 76%.

Altria’s 2025 adjusted EPS guidance falls in the range of $5.35 to $5.45, representing 3% to 5% growth over 2024. Analyst estimates for Q3 2025 align with this growth trajectory. Wall Street views vary, with BofA Securities maintaining a “Buy” rating while the consensus remains a “Hold.”

Income-focused investors find Altria appealing with its 6%+ yield and consistent dividend growth. Growth-hungry investors may be cautious due to regulatory challenges and stagnant revenue growth. Analysts project limited room for stock appreciation, with the consensus price target below current levels. Shares may remain stable, offering rewards through dividends rather than price gains.

Read more at Yahoo Finance: This Dividend King Just Raised Its Payout. Should You Buy the Stock Here?