Altria: Unwarranted Pessimism With A 9% Yield


  • Altria Group stock has performed reasonably well recently.
  • Altria needs to execute its smokeless transition well to lift its well-battered valuation further.
  • Structural headwinds on its legacy tobacco segment are likely priced into its attractive valuation.
  • Income investors should also find the stock’s almost 9% dividend yield attractive.
  • I argue why continued pessimism in MO is unwarranted, as its price action is also increasingly bullish.
Marlboro cigarettes empty packs


Altria Needs To Execute Its Smokeless Transition Well

Altria Group’s (NYSE:MO) stock has performed reasonably well since my previous bullish article in March 2024. I kept my Buy rating, as I assessed a less hawkish Fed should provide more robust

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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