AltriaNYSE: MO

At first glance, Altria might look like a safe dividend stock -- but that's far from the case.

Altria's stock rose by 7.83% after it exceeded expectations for its third-quarter earnings, showing a 1.3% increase in net revenue and a 7.8% rise in adjusted earnings per share. The company aims for long-term growth with smoke-free products like NJOY and continues to reward its shareholders through dividends and buybacks. Additionally, Altria introduced a cost-saving plan named "Optimize & Accelerate," which is projected to save at least $600 million over the next five years.

Smoking does not match my personal beliefs.

The market was obviously pleased with how the management is handling the difficult situation of the company.

Altria Group, Inc.'s Q3 report for 2024 emphasizes its main strengths once more. Newer business areas are starting to show some positive signs. The MO stock still seems to be undervalued, with a price-to-earnings ratio of 10 and an 8% yield.

Altria offers a high yield of 8.2%, but this comes with considerable risks. You should only invest in it if you are comfortable with a lot of uncertainty.

Altria Group, Inc. (NYSE:MO) will hold its Q3 2024 Earnings Conference Call on October 31, 2024, at 9:00 AM ET. The call will feature company leaders, including Mac Livingston, Billy Gifford, and Sal Mancuso, and is expected to last around one hour, with management comments followed by a Q&A session. Participants from various financial institutions will also be joining the call.

Altria's results for the third quarter show good pricing, but cigarette shipment volumes are still low. The management has introduced the Optimize & Accelerate plan.

Altria is facing difficulties in its Smokeable Products division due to financial strain on consumers and the increasing popularity of illegal e-vapor options.