Altria Group Stock Performance and Future Prospects
Tobacco industry stalwart Altria Group (MO) has delivered market-beating returns over the past five years, with a 53% share price increase and a dividend-adjusted total return of 121%, outpacing the broader market's 105%. A $10,000 investment in Altria five years ago WOULD now be worth over $22,120.
The company's valuation hinges on its smokeless products and consistent dividend growth. Trading at 12 times expected earnings with a 6.4% dividend yield, Altria has raised its dividend annually for 55 consecutive years, a trend likely to continue. Despite a 3.6% revenue decline in the first half of 2025, margin improvements and stock buybacks have supported earnings growth.