The Early Bird - Stock of the Day

Altria Group (MO)

$52.87

+$0.64 (+1.2%)

Market Cap: $89.60B

About Altria Group

Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand; moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands; oral nicotine pouches under the on! brand; and e-vapor products under the NJOY ACE brand.

It sells its products to distributors, as well as large retail organizations, such as chain stores. The company was founded in 1822 and is headquartered in Richmond, Virginia.

Altria Group Bull Case

Here are some ways that investors could benefit from investing in Altria Group, Inc.:

Altria Group, Inc. has a strong dividend yield of 7.82%, which can provide a steady income stream for investors. This is particularly attractive in a low-interest-rate environment.
The company reported earnings per share of $1.29, exceeding analysts' expectations, indicating strong financial performance and potential for future growth.
With a net margin of 42.82%, Altria Group, Inc. demonstrates effective cost management and profitability, which can be appealing to investors looking for financially stable companies.
Recent institutional investments show confidence in the company, with 57.41% of the stock owned by institutional investors and hedge funds, suggesting a positive outlook from market experts.
The current stock price of Altria Group, Inc. is favorable for entry, allowing investors to potentially benefit from future price appreciation as the company continues to innovate in the tobacco and nicotine product markets.

Altria Group Bear Case

Investors should be bearish about investing in Altria Group, Inc. for these reasons:

The company has a negative return on equity of 233.80%, which indicates that it is not generating profit from its equity investments, raising concerns about its financial health.
Altria Group, Inc. operates in a declining industry, as smoking rates continue to decrease, which could impact long-term growth prospects.
The payout ratio is currently at 68.92%, suggesting that a significant portion of earnings is being paid out as dividends, which may limit reinvestment in the business.
Regulatory pressures and changing consumer preferences towards healthier alternatives could pose risks to Altria Group, Inc.'s market position and profitability.
Recent market volatility may affect stock performance, and investors should be cautious of potential fluctuations in share price due to external economic factors.

3 Must-Have Dividend Kings for 2025

Written By Sam Quirke on 1/6/2025

Photo of an increasing stack of coins with rook chess pieces on most, and a King on the biggest one As we head into 2025, investors are reflecting on what was a red-hot 2024 for the stock market. Despite ending on a softer-than-expected note as the Fed tempered rate cut expectations, it was still a solid year all around, and the mood remains optimistic.

However, with last year's 20% rally fresh in mind, many are questioning whether the market can sustain such momentum for another 12 months. While individual opportunities for this kind of appreciation remain, another strategy to consider is to focus on dividend-paying stocks.

Dividend stocks not only provide a reliable income stream but also offer stability, even in unpredictable market conditions. For those looking to enhance returns, here are three Dividend Kings with strong yields that can strengthen your portfolio this year, regardless of how the broader market or individual stock prices perform.

1. Altria Group

Despite falling 10% through December, shares of tobacco giant Altria Group Inc (NYSE: MO) still managed to finish 2024 up around 30%. While they need to start trading beyond the $60 level to show they've truly broken out of this multi-year range, this is the best they've looked in a long time.

The fact their dividend yield is 7.7% will only add to investors' temptation. Altria's dividend has more than 50 years of continuous growth behind it, so it's no wonder it's considered one of the most reliable dividend-paying stocks out there.

Coupled with the fact that Bank of America upgraded its rating on the underlying stock last month and gave it a $65 price target, you're looking at one of the more attractive stocks to own for 2025.

2. Philip Morris International

Like Altria, Philip Morris International Inc. (NYSE PM) is another tobacco stalwart with an industry-wide reputation for a strong dividend. They boast more than 16 years' worth of dividend growth, along with a 4.46% dividend yield.

In addition, the PM stock is looking quite attractive right now. After gaining more than 50% from April through November 2024, the stock price fell at the end of the year. But this is starting to look like a golden entry opportunity.

PM's relative strength index (RSI) is in the mid-30s, suggesting it's close to being extremely oversold. For those of us on the sidelines who are keen to add a strong dividend-paying stock to our portfolio for 2025, potential entry points don't get a whole lot better than this.

3. Verizon Communications

Rounding out our list is telecommunications titan Verizon Communications Inc (NYSE: VZ). The stock traded mostly sideways through 2024 and started 2025 towards the bottom of that range. However, with a dividend yield of 6.74%, don't be surprised if Wall Street starts taking advantage of bargain prices.

At the close of last week, Verizon shares were officially extremely oversold, as per their RSI, so it's fair to expect some kind of bounce back in the near term. Given their strong 20-year track record of dividend growth, there's a lot to like about the stock.

While two analysts rated the stock Neutral in December, both gave refreshed price targets that are well above where Verizon shares are trading right now. It will be interesting to see if the stock can continue to consolidate above the $39 level in the coming weeks. One trade to consider is starting to build a position around here and adding to it as it turns north again. And receiving a dividend yield of nearly 7% while you wait for this isn't the worst way to start the new year.