Stock Pulse
Altria (MO) faces headwinds from a Deutsche Bank downgrade to "hold" due to valuation concerns and regulatory issues surrounding its e-vapor business, including ceasing sales of NJOY Ace e-cigarettes [10]. Despite a recent stock drop [10], the company maintains a 7% dividend yield and has a 55-year history of dividend increases [3], [5], [7], [8], recently declaring a $1.02 dividend [3]. While Q4 2024 earnings slightly beat expectations and modest revenue growth was reported [9], full-year 2025 projections anticipate slight revenue decline [4]. Altria's core tobacco business continues to generate strong cash flow [7], but declining smoking rates and reliance on cigarette sales remain long-term risks [5], [6]. Though Altria is considered recession-resistant [8] and unaffected by tariffs due to domestic sourcing [8], its future growth relies on expanding its smoke-free product segment [7].