Geopolitically driven market uncertainty has changed the way investors should look Altria(NYSE: MO) And his enormous dividend yield of 7.2%. Many investors will probably notice that they still don’t want to buy this cigarette maker. But there are a few who can change their opinion in 2025, at least for a while. This is what you need to know to decide whether Altria is a purchase, selling or storing today.
The most important tobacco product from Altria is cigarettes. The nicotine in cigarettes is addictive in nature, so as soon as a consumer starts smoking, they continue to smoke. This is why tobacco stocks fall in the consumer’s stack sector, which is generally filled with necessary articles such as soap and food that are regularly purchased. Although tobacco is in no way a life course, it is regularly purchased, regardless of what happens on Wall Street or in the economy.
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In fact, people often smoke more cigarettes in difficult times. So, in times of stress, like those who are now happening, thanks to geopolitical issues, Altria’s activities can actually be fairly resilient. Now add the enormous dividend yield of 7.2% and you can see why an income -oriented investor Altria may want to buy in 2025.
This yield is also supported by the very strong price power of the company. For years it has been increasing the prices of its products to support the growth of the dividend, which has increased annually since 2009. It is a good story, but there is a wrinkle when you dig into the price increases.
The reason to hold Altria in 2025 is in principle the same as the reason to buy it. It has an elevated yield that does not look like it is in danger in the short term. In particular, the dividend payment ratio was around 60% in 2024. That is a bit high but hardly bizarre for a stock of the consumer’s pile. And, given the nature of tobacco products, this suggests that there is no reason in the short term to worry about the safety of dividends.
That said, if you have had Altria for a number of years, you know that there is a long -term problem. Smoking cigarettes is out of favor in North America, and so the volumes of the company have been in a steady state of decline for years. In 2024, the cigarette volumes of the company fell a huge 10.2%. That is a terrible number, even if the price increases of the company have been able to compensate for the hit of the drop of volumes.
If you choose to buy or hold Altria in 2025, you want to keep an eye on the company. It is not the type of company that you can buy and can hold comfortably forever, even if it can reliably pay its dividend in the short term.
So a large return and a company that is likely to last in the light of adversity in the short term are the reasons to buy and retain Altria. The reason for selling it, or not to buy it at all is that the current volume in its most important company is decreasing. It is likely that the price will ultimately affect the price that the company is performing, a turning point where they make the problem worse.
MO -Data by Ycharts
To be honest, Altria is not around and does nothing. It has tried to find products to compensate for the deterioration of cigarettes. That process did not go well, with missteps in the vapen and marijuana spaces. The company tries again with Vapen through the purchase of Njoy, but that is still a relatively small company. It is also about a few problems, since it is entangled to a patent store with Juul.
If you prefer to own companies that perform at the top of their game, Altria really doesn’t. There are other high-yield shares, such as Enterprise Products Partners” EnbridgeAnd WP Careywho have similar yields and much stronger companies.
If you are looking for a high yield from a company that will probably be resilient in the current geopolitical environment, Altria can be a good choice for you in 2025. The problem arises when you come after 2025 because the long -term trends are worrying in Altria’s affairs. Most dividend investors will probably be better off elsewhere, but if you are willing to take a good look at Altria, it can be a safe haven for the time being.
Consider this before you buy shares in Altria Group:
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Reuben Gregg Brewer has positions in Enbridge and WP Carey. The Motley Fool has positions and recommends Enbridge. The Motley Fool recommends Enterprise Products partners. The Motley Fool has a disclosure policy.
Is Altria a purchase, selling or keeping in 2025? was originally published by the Motley Fool
