Altria Group Stock: A Buy, Sell, or Hold in 2025?

Altria Group, Inc. (NYSE: MO) is a leading tobacco company with a strong track record of delivering solid financial performance and returning capital to shareholders. As we look ahead to 2025, investors may be wondering whether Altria Group stock is a buy, sell, or hold. In this article, we will analyze the company's financial performance, dividend history, and future projections to help you make an informed investment decision.

Financial Performance

Altria Group reported strong financial results for the fourth quarter and full year of 2024. The company's net revenues increased by 1.6% in the fourth quarter and 2.48% for the full year. Adjusted diluted EPS grew by 9.3% in the fourth quarter and 3.4% for the full year. The company's adjusted tax rate was 24.1% in the fourth quarter and 24.3% for the full year, indicating a consistent and efficient tax strategy.



Dividend History and Future Projections

Altria Group has a strong history of paying and increasing dividends. In 2024, the company increased its dividend by 4.1%, following a 4.0% increase in 2023 and a 3.5% increase in 2022. Altria Group's dividend yield is around 8.0%, which is significantly higher than the average dividend yield of the S&P 500. The company has set a goal to achieve mid-single digits dividend per share growth annually through 2028, indicating a commitment to continuing to return capital to shareholders.

Future Projections

Altria Group expects to deliver 2025 full-year adjusted diluted EPS in a range of $5.22 to $5.37, representing an adjusted diluted EPS growth rate of 2% to 5% from a base of $5.12 in 2024. The company's 2028 Enterprise Goals include delivering a mid-single digits adjusted diluted EPS compounded annual growth rate (CAGR) in 2028 from a $4.84 base in 2022 and a progressive dividend goal targeting mid-single digits dividend per share growth annually through 2028.

Risks and Challenges

While Altria Group has a strong track record, there are still risks and challenges to consider. The company operates in a heavily regulated industry, and changes in regulations could negatively impact its business. Altria Group also faces intense competition in the tobacco industry, and market share and product liability risks could impact the company's financial performance. Additionally, economic downturns and technological disruptions could pose challenges to Altria Group's business.

Analyst Ratings and Stock Price Forecast

The average analyst rating for Altria Group stock from 7 stock analysts is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months. The average target price for Altria Group stock is $53.29, with a low estimate of $41 and a high estimate of $65. This suggests that analysts expect the stock to increase in value over the next year.

Conclusion

Altria Group's strong financial performance, dividend history, and future projections make it an attractive investment option for income-oriented investors. The company's commitment to returning capital to shareholders and growing its dividend, along with its solid financial performance, indicates that Altria Group stock is a buy in 2025. However, investors should be aware of the risks and challenges facing the company and consider them when making an investment decision. By carefully evaluating Altria Group's financial performance, dividend history, and future projections, investors can make an informed decision about whether Altria Group stock is a buy, sell, or hold in 2025.