Altria Group stock faces challenges diversifying from cigarettes, raising concerns for investors.

From Yahoo Finance: 2025-06-21 09:47:00

Altria Group’s stock is rising amid market uncertainty, but the company’s attempt to diversify away from cigarettes has been challenging. With a highly leveraged balance sheet affecting dividend payments, investors are cautious. The decline in cigarette usage in the US poses a significant threat to Altria’s core business.

Despite efforts to invest in other products like cannabis and vaping, Altria’s revenue is still mostly driven by cigarettes. The decline in cigarette consumption and the company’s struggle to diversify raise concerns for investors. Management’s focus on stock buybacks and increasing debt may not be sustainable long-term.

Altria’s heavy reliance on cigarettes, declining revenue, and lack of success in diversifying pose risks for investors. With a highly leveraged balance sheet, the company’s future looks uncertain. Smart investors may want to avoid buying Altria’s stock at current levels, despite the attractive dividend yield.

Consider the risks before investing in Altria Group, as the company faces challenges in diversifying away from cigarettes. The Motley Fool Stock Advisor team recommends other stocks for potential growth, highlighting the importance of thorough research before making investment decisions.

Read more: Should You Buy Altria Group Stock Under $60 With a Dividend Yielding 6.85%?