Altria Group's Dividend Growth and Steady Cash Flow Attract Long-Term Investors Amid Declining Cigarette Sales

Altria Group (MO) is a major tobacco company with well-known brands, including Marlboro and Copenhagen. Despite declining cigarette sales, the company's addictive products allow for price hikes, supporting steady cash flow. Altria's free cash flow is sufficient to cover its dividend payments, making it one of the best dividend stocks with a yield of 6.53%. Long-term investors favor MO due to its consistent dividend payments, which have been raised 60 times in the past 56 years.

Altria Group, Inc. (NYSE:MO) reported its latest earnings results on Wednesday, July 30, 2025, with an EPS of $1.44, exceeding analysts' consensus estimates of $1.37 by $0.07. The company's quarterly revenue was $5.29 billion, up 0.2% year-over-year, with a net margin of 37.24% and a negative return on equity of 295.26%. Altria Group has set its FY 2025 EPS guidance at $5.350-$5.450.

In addition to its strong earnings performance, Altria Group recently increased its quarterly dividend to $1.06 per share, up from $1.02, reflecting a yield of 6.5% and a dividend payout ratio of 82.01%. The ex-dividend date for this dividend is Monday, September 15, 2025, with the dividend to be paid on Friday, October 10, 2025.

Several institutional investors and hedge funds have increased their stakes in Altria Group. Assenagon Asset Management S.A. increased its holdings by 212.1% in the second quarter, owning 1,358,342 shares, while Vanguard Group Inc. grew its holdings by 0.8% during the first quarter, owning 158,117,225 shares. Other notable increases include Charles Schwab Investment Management Inc., GQG Partners LLC, Invesco Ltd., and JPMorgan Chase & Co. Altria Group, Inc. $MO Shares Acquired by Assenagon Asset Management S.A.^[1]

Analysts have also weighed in on Altria Group. Bank of America increased its price target to $72.00 and gave the stock a "buy" rating, while Barclays raised its target price to $57.00 and gave the stock an "underweight" rating. UBS Group raised its rating to "neutral" and lifted its target price to $59.00. Jefferies Financial Group initiated coverage with an "underperform" rating and a $50.00 price target, and Morgan Stanley raised its price objective to $62.00 and gave the company an "equal weight" rating. Two research analysts have rated the stock with a Buy rating, five have given a Hold rating, and two have assigned a Sell rating to the stock. The consensus rating is "Hold" with an average target price of $60.88 Altria Group, Inc. $MO Shares Acquired by Assenagon Asset Management S.A.^[1].

Despite the decline in cigarette sales, Altria Group's addictive products allow for price hikes, supporting steady cash flow. The company's free cash flow is sufficient to cover its dividend payments, making it one of the best dividend stocks. Long-term investors favor MO due to its consistent dividend payments, which have been raised 60 times in the past 56 years.