Altria Group Defies Tobacco Industry Decline with Strong Dividend Growth

Altria Group (MO 0.41%) has delivered a 30% total return in 2025, outpacing the market over the past five years. The tobacco giant's resilient performance stems from stable cash flows and a dividend yield now standing at 6.25%, well above market averages.

Despite a 10% year-over-year decline in Marlboro volumes last quarter, Altria's smokeable products segment grew operating earnings by 4.4% to $2.9 billion. Strategic price increases and cigar volume growth have effectively offset cigarette demand erosion in an era of nicotine pouches and vaping devices.

The company's consistent pricing power demonstrates how mature tobacco businesses can generate shareholder value even amid secular decline. Altria's 54-year dividend growth streak remains intact, supported by operational discipline in a challenging regulatory environment.