Altria, the largest cigarette maker in the U.S., has been facing declining business for years. Management’s focus on finding new avenues for growth is crucial. Despite a high dividend yield of 7.7%, the company’s core business is struggling. In the third quarter of 2025, revenues were $6.1 billion, with smokable tobacco contributing 90%.

The decline in cigarette volumes, down 8.2% year-over-year, is a significant issue for Altria. The company has been using price increases to offset the impact. Management’s strategic missteps, including spinning off Philip Morris International and failed investments in Juul and Cronos Group, have raised concerns among investors. Their recent acquisition of Njoy faces legal issues.

Altria’s track record of unsuccessful investments in the vaping and marijuana sectors raises questions about the company’s long-term growth strategy. Shareholders have shouldered substantial losses from these ventures. The company’s focus on smoke-free products faces challenges, making investors wary of the sustainability of Altria’s substantial dividend yield.

Before investing in Altria Group, investors should consider the company’s history of strategic missteps and declining cigarette business. The Motley Fool Stock Advisor team has identified 10 better stocks for investment, excluding Altria Group. With a total average return of 969%, Stock Advisor has outperformed the S&P 500. Investors should be cautious about the safety of Altria’s high dividend yield.

Read more at Yahoo Finance: Think You Know Altria? Here’s 1 Little-Known Fact You Can’t Overlook.