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Altria’s Dividend Appeal Endures as Smoke-Free Transition Lags

Income investors weigh a rich payout against slow progress in smoke‑free products.

Overview

  • Altria pays a quarterly dividend of $1.06 per share with a 6.45% yield as of Sept. 27, supported by 60 dividend increases over 56 years.
  • In the second quarter of 2025, roughly 83% of operating income still came from traditional cigarettes, underscoring the reliance on smokeable products.
  • Oral nicotine pouches, led by the On! brand, are the company’s strongest smoke‑free offering yet remain a minor contributor to overall results.
  • The latest analysis suggests smoke‑free lines are unlikely to become a major revenue driver in the foreseeable future.
  • Altria is featured among top S&P 500 dividend payers, highlighting its appeal to income-focused investors despite an uncertain transition path.