Could Buying High-Yield Altria Today Set You Up for Life?

• Altria's awesome 7.2% dividend output is supported by a past of accordant dividend increases.

• Altria's astir important concern is selling smokable tobacco, which accounts for astir 90% of its revenue.

• The company's cigaret volumes person been successful diminution for years.

• 10 stocks we similar amended than Altria Group ›

If you don't look nether the hood, Altria (NYSE: MO) appears to beryllium a precise compelling investment. It operates successful the user staples sector, it has a precise ample 7.2% yield, and the dividend has been accrued regularly for years.

Before you leap connected the stock, reasoning you've acceptable yourself up for a beingness of reliable dividend income, assistance up the covers and instrumentality a person look astatine the concern that backs the dividend.

Here's wherefore you mightiness not similar what you see.

Consumer staples companies nutrient products that are purchased regularly, careless of the marketplace oregon economical environment, and typically person a humble cost. Brand loyalty is often a important origin successful this abstraction arsenic well. All these factors enactment successful favour of Altria's astir important offering: Smokable baccy products, specified arsenic cigarettes. Taken arsenic a group, smokeable baccy accounts for a immense 88% of the company's apical line.

Most user staples products are necessity items, similar food, toilet paper, and toothpaste. You astir surely request to bargain these items regularly. Tobacco isn't a necessity. It is simply a user staple mostly due to the fact that of the addictive quality of nicotine, which keeps buyers coming backmost for more. Unlike makers of deodorant and akin products, baccy stocks are truly misdeed stocks. That's important due to the fact that Altria's smokable products radical has been successful diminution for years arsenic cigaret smoking has progressively fallen retired of favour with consumers.

In the 3rd 4th of 2025, measurement successful the concern dropped 8%. Through the archetypal 9 months of the year, measurement was disconnected by 10.3%. In 2024, volumes declined 10%. In 2023, volumes fell 9.6%. That is simply a unspeakable inclination that should beryllium a informing motion to anyone who owns oregon is reasoning astir owning tobacco-focused Altria. Most investors would beryllium moving for the hills if this were a institution that produced food.

Given that backdrop, it should travel arsenic small astonishment that the apical enactment of Altria's income connection fell 3% successful Q3 2025, portion it was down astir 3.4% done the archetypal 9 months of the year. What mightiness beryllium confusing is that the company's adjusted net roseate 3.6% and 5.9%, respectively, implicit those aforesaid clip periods.