Core Insights - Altria Group, Inc. and Philip Morris International Inc. are leading companies in the global tobacco industry, focusing on cigarette and nicotine product sales amid changing consumer preferences [1][2] - Altria has a market capitalization of approximately $116.6 billion, while Philip Morris has a larger market value of around $291.9 billion, reflecting its international presence and leadership in next-generation products [1][2] Altria Group, Inc. Overview - Altria's investment appeal is supported by resilient cash-flow generation and consistent shareholder returns, with a 4.4% adjusted EPS growth in 2025 and approximately $8 billion returned to shareholders through dividends and share repurchases [3][4] - The smokeable products segment generated over $11 billion in adjusted operating income in 2025, with margins expanding to 63.4% due to strong pricing execution [4] - Altria is advancing its smoke-free portfolio, particularly in modern oral nicotine, with a 10.9% shipment volume growth for the on! brand in 2025 [5] - Domestic cigarette volumes declined approximately 9.5% in 2025, indicating ongoing pressure in the combustible category [6] Philip Morris International Inc. Overview - Philip Morris demonstrated a strong growth profile in 2025 with a 14.8% adjusted EPS growth, net revenues exceeding $40 billion, and organic operating income growth of 10.6% [7][8] - Smoke-free products accounted for 41.5% of total net revenues and nearly 43% of gross profit in 2025, with IQOS heated tobacco units and ZYN nicotine pouches showing significant growth [9][10] - Despite a 1.5% decline in combustible cigarette shipments, pricing actions helped lift combustible net revenues by 2.5% [10] - Management projects 2026 adjusted EPS growth of 11.1% to 13.1%, indicating confidence in the company's operating momentum [11] Comparative Analysis - Altria's shares increased by 26.1% over the past year, outperforming Philip Morris's 21.7% gain, although both lagged behind the industry growth of 33.8% [12] - Altria trades at a forward P/E ratio of 12.4, while Philip Morris trades at a forward P/E of 21.82, indicating differing valuations [16] - Philip Morris is viewed as the stronger growth story due to its accelerated shift toward smoke-free products and global scale, while Altria is seen as a stable income choice reliant on its U.S. combustible franchise [17]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-08940 ALTRIA GROUP, INC. (Exact name of registrant as specified in its charter) | Virginia | | | 13-3260245 | | --- | --- | --- | --- | | State or other jurisdiction of incorporation or organiz ...

It's nearly impossible to find a marijuana stock that has performed well over the years; even a game-changing event like President Donald Trump's late 2025 executive order to reschedule the drug didn't move the needle. Many marijuana companies, including industry stalwart Canopy Growth (NASDAQ: CGC), have seen their share prices erode along with their fundamentals. If you still aim to invest in something smokable that produces a reliably strong passive income stream, consider ditching Canopy Growth and o ...

Core Insights - The article emphasizes the importance of dividend-focused investing, highlighting that dividends have historically contributed significantly to total returns in the stock market [4]. Company Analysis Altria - Altria Group Inc. is a major player in the tobacco industry, offering a 6.12% dividend yield and primarily selling cigarettes under the Marlboro brand [5]. - The company sold 35 million shares of Anheuser-Busch InBev, representing 18% of its holdings, and announced a $2.4 billion stock repurchase plan [6]. - Goldman Sachs has rated Altria as a Buy with a target price of $72 [6]. Clorox - Clorox Co. provides a reliable 4.04% dividend yield and is known for its consumer and professional cleaning products [7]. - The company operates through four segments, including Health and Wellness and Household products [8]. - Jefferies has rated Clorox as a Buy with a target price of $151 [9]. Kimberly-Clark - Kimberly-Clark Corp. has a 4.66% dividend yield and has raised its dividend for 53 consecutive years [10]. - The company announced an acquisition of Kenvue Inc. for $48.7 billion, expected to close in the second half of 2026 [14]. - Argus has rated Kimberly-Clark as a Buy with a target price of $120 [14]. PepsiCo - PepsiCo, Inc. reported solid third-quarter earnings with a 3.36% dividend yield and is trading at 18 times forward earnings [15]. - Activist investor Elliott Investment Management has taken a $4 billion stake in PepsiCo, aiming to unlock value through strategic changes [16]. - UBS has rated PepsiCo as a Buy with a target price of $190 [17]. Verizon - Verizon Communications Inc. offers a 5.62% dividend yield and trades at 9.13 times its estimated 2026 earnings [18]. - The company operates in two segments, providing a range of communication services to consumers and businesses [19][20]. - TD Cowen has rated Verizon as a Buy with a target price of $51 [20].

Key Takeaways Altria's Marlboro held a 40.5% retail share in 2025 despite ongoing U.S. cigarette volume declines.MO offset lower shipment volumes with higher pricing, supporting Smokeable Products' profitability.Increased promotional spending and trade-down trends weighed on margins amid evolving competitive dynamics.Altria Group, Inc. (MO) is facing an important challenge for its flagship Marlboro brand as the U.S. cigarette market continues to shrink. In the fourth quarter of 2025, the company’s results u ...

Group 1 - The primary goal of the "High Income DIY Portfolios" service is to provide high income with low risk and capital preservation for DIY investors [1] - The service offers seven portfolios designed for income investors, including retirees, featuring three buy-and-hold portfolios, three rotational portfolios, and a conservative NPP strategy portfolio [1] - The portfolios include two high-income portfolios, two dividend growth investing (DGI) portfolios, and a conservative NPP strategy portfolio aimed at low drawdowns and high growth [1] Group 2 - The "High Income DIY Portfolios" service includes a total of 10 model portfolios with varying income targets and risk levels, along with buy and sell alerts and live chat support [2] - The investment approach focuses on dividend-growing stocks with a long-term horizon, aiming for 30% lower drawdowns and 6% current income [2] - The service is managed by a financial writer with 25 years of investment experience, emphasizing strategies for stable, long-term passive income [2]

Core Viewpoint - Altria offers a high yield of 6.3%, but the business faces significant challenges, making it a riskier investment compared to Hormel Foods, which has a lower yield of approximately 5% but a more stable business model [1][4][11]. Altria Overview - Altria's primary business revolves around cigarette sales, which are declining; for instance, cigarette volumes fell by 10% in 2025 [4]. - The company has managed to support revenue and earnings through price increases and stock buybacks, allowing for ongoing dividend increases, but it remains fundamentally challenged [5]. Hormel Foods Overview - Hormel Foods is a large food manufacturer focused on protein products, aligning well with current consumer trends [6]. - The company is currently facing challenges, particularly in passing rising costs onto consumers, and is refocusing on cost control and portfolio overhaul, including plans to sell its whole turkey business [7][9]. - Hormel's interim CEO, Jeff Ettinger, has implemented strategies leading to five consecutive quarters of organic sales growth, indicating positive momentum [10]. - Hormel has a 5% yield and has increased its dividend annually for over 50 years, earning the title of Dividend King, which reflects a strong commitment to returning value to investors [11].

Group 1 - The current durable income opportunity set for investors seeking high yields combined with safety is limited [1] - Roberts Berzins has over a decade of experience in financial management, focusing on shaping financial strategies for top-tier corporates and executing large-scale financings [2] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] Group 2 - Berzins has been involved in developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [2] - He holds a CFA Charter and an ESG investing certificate, and has experience with the Chicago Board of Trade [2] - Berzins actively participates in thought-leadership activities to support the development of pan-Baltic capital markets [2]

Core Insights - Altria is transitioning from traditional tobacco products to innovative alternatives, emphasizing products like on! PLUS and advocating for stronger enforcement against illicit markets in the U.S. [1] - The company continues to provide strong cash returns to shareholders while navigating this transition [1] - CEO Billy Gifford will retire in May, with Sal Mancuso set to take over leadership [1] Company Overview - Altria has been a leader in the tobacco industry for decades, known for its iconic Marlboro brand [1] - The management team includes key figures such as Sal Mancuso (CFO), Heather Newman (Chief Strategy and Growth Officer), and Bob McCarter (General Counsel) [3] Financial Considerations - Future dividend payments and share repurchases are subject to the discretion of the Board [4] - The presentation includes discussions on non-GAAP financial measures, with further explanations available on Altria's website [4]

Altria Conference Call Summary Company Overview - **Company**: Altria Group, Inc. - **Industry**: Tobacco and Nicotine Products Key Points Transition to Smoke-Free Products - Altria is transitioning smokers to a smoke-free future while competing for existing smoke-free nicotine consumers and exploring growth opportunities beyond the U.S. and nicotine [3][4] - The U.S. nicotine space is evolving with innovative smoke-free products driving change, creating unprecedented opportunities for Altria's businesses [4] Market Dynamics - In 2025, growth in e-vapor and oral tobacco offset cigarette industry volume declines, leading to a total equivalized nicotine volume growth of approximately 2.5% last year [5] - Over half of the 55 million U.S. nicotine consumers now use smoke-free products, with more than one-third using them exclusively [5] Consumer Segmentation - Altria identifies three consumer groups: 1. **Traditionalists**: Loyal to established brands like Marlboro and Copenhagen [6][7] 2. **Transitioners**: Open to switching to smoke-free alternatives [8] 3. **Variety Seekers**: Early adopters of innovation, seeking different product forms and flavors [9] Product Performance - The oral tobacco category grew by 12.5% last year, with nicotine pouches driving over 40% growth [10] - Altria's oral tobacco products segment grew adjusted OCI by a CAGR of 1.3% over the past five years [10] - The introduction of on! PLUS, a premium nicotine pouch, is expected to meet evolving consumer preferences [11][12] Regulatory Environment - Altria is advocating for improved enforcement against illicit markets, which represent a significant portion of the e-vapor category [17][18] - The company is optimistic about FDA authorizations for new products, including additional flavors and strengths for on! PLUS [13][14] Financial Performance - Altria's smokable product segment has grown adjusted OCI by more than $950 million over the past five years, with adjusted OCI margins expanding to 63.4% [26] - The company has delivered over $100 billion in cash returns to shareholders since the 2008 PMI spinoff, with a recent quarterly dividend increase of 3.9% [35][36] Future Growth Opportunities - Altria is exploring international and non-nicotine opportunities, including energy products through collaboration with Proper Wild [33][34] - The company aims to commercialize at least five non-nicotine products by 2028, with strong consumer interest in energy shots and gummies [34][35] Strategic Initiatives - The Optimize and Accelerate initiative aims to generate at least $600 million in savings to reinvest in growth, enhancing operational and financial flexibility [21][22] - Altria is modernizing its marketing strategies to engage consumers through new channels, including social media and in-person events [14][15] Conclusion - Altria is well-positioned to capture the growing smoke-free opportunity while maintaining strong cash returns and shareholder value through its traditional tobacco businesses [38]