Altria Group, Inc. (NYSE:MO) is featured among the 10 Highest Dividend-Paying Stocks to Buy in the S&P 500.
Altria Group, Inc. (NYSE:MO), one of the largest manufacturers and marketers of tobacco products worldwide, is particularly recognized for its iconic Marlboro cigarettes. The company has historically been a favorite among dividend investors; however, its future outlook appears increasingly uncertain.
As the tobacco sector transitions away from traditional cigarettes to innovative smoke-free alternatives, the ability of Altria Group, Inc. (NYSE:MO) to adapt to these market changes will be crucial for its future growth, notably as its conventional tobacco sales begin to stagnate.
The company’s most productive foray into the smoke-free arena has been its oral nicotine salt pouches. As of the second quarter of 2025, approximately 83% of Altria’s operating income still stemmed from its traditional smokeable products, while the remaining 17% was derived from various oral tobacco and nicotine options, not exclusively from the On! brand. This reflects that smoke-free offerings have yet to become a significant revenue source for Altria and seem unlikely to do so in the near term.
Additionally, Altria Group, Inc. (NYSE:MO) has an extensive history of increasing dividends, having raised its payouts 60 times over the past 56 years. As of September 27, the company provides a quarterly dividend of $1.06 per share, resulting in a dividend yield of 6.45%.
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