Altria (MO) Stock

Since 1926, dividends have made up about 32% of the total return for the S&P 500, while capital gains have accounted for 68%.

Altria (MO 0.10%) offers a significant dividend yield of 7.1%. Meanwhile, British American Tobacco (BTI 0.61%) provides an even greater yield of about 8%.

Even with its negative social image and serious health risks, tobacco is considered one of the most profitable industries in history. The U.S. Surgeon General issued the first warning about the dangers of smoking to the American public on January 11, 1964.

Altria, which has a market value of $90 billion and a dividend yield over 7%, is still considered a good long-term investment because of its strong profits. However, the company deals with heavy regulations and decreasing sales in its industry, which makes growth difficult. Even with these issues, Altria manages to maintain strong earnings growth and provides good returns for its shareholders.

Altria (MO 1.25%) has many appealing aspects, especially for those who invest in dividends. However, there are also some significant concerns to consider.

After the election and comments from Fed Chair Powell, major stock indices and companies like Pfizer and Coca-Cola saw declines. However, my Dividend Harvesting Portfolio's diversification helped reduce losses, achieving a 25.53% return on invested capital even during market downturns. My weekly dividend income is increasing, with an expected annual total of $1,855.76, highlighting the benefits of reinvestment and compounding.

I have a 'hold' rating for Altria Group because its market share is decreasing and smoking rates are still falling. Although there are promising areas like NJOY and on!, the overall market share and cigarette sales are still going down. While revenue is increasing due to higher prices, this isn't sufficient to counterbalance the challenges in the company's main markets.

Three Reasons to Invest in Altria Stock Right Now

The recent rise in the markets, particularly in areas like technology, energy, finance, and industry, shows that the uncertainty around election outcomes can shift focus away from safer, income-generating investments.