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Altria’s 7% Yield Draws Interest as 2026 Nears, but Structural Declines Linger

A rich yield confronts long-run volume declines, with growth prospects unclear.

Overview

  • Altria is highlighted for income appeal with a roughly 7% dividend yield as of Dec. 8 and 56 consecutive years of increases.
  • Shares trade at an about 10.7 forward P/E, signaling a discounted valuation by common metrics.
  • U.S. adult smoking has fallen from roughly 42% in 1965 to just over 11% in 2022, pressuring cigarette volumes.
  • The company has leaned on pricing power across brands such as Marlboro, Black & Mild, Copenhagen, Skoal and Virginia Slims to stabilize revenue.
  • The dividend is described as not in jeopardy for now, though its long-term durability hinges on offsetting volume losses and finding viable non-tobacco growth.