"For some Americans, cigarettes are an essential product, despite the cost of smoking averaging $3,000 per smoker per year. This has allowed tobacco giant Altria Group Inc. ( NYSE: MO) to raise its dividend for 56 straight years. Its shares are up 12% this year, compared to 16% for the S&P 500. A current dividend of $4.24 gives Altria a forward yield of 7.3%."
"In the most recently reported quarter, Altria revenue was down 6% year over year to $5.3 billion. However, its adjusted diluted earnings per share (EPS) were 6% higher to $1.23. Management affirmed its guidance of a 2% to 5% increase in EPS for the full year. Its success in the most recent quarter came from its legacy business. CEO Billy Gifford commented, "Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter.""
About 12% of Americans, or roughly 29 million people, smoke cigarettes, and nearly 62 million use some form of tobacco. Smoking costs average about $3,000 per smoker each year. Altria has increased its dividend for 56 consecutive years and currently yields 7.3% based on a $4.24 dividend. Shares are up 12% year-to-date while the S&P 500 is up 16%. Most revenue comes from cigarette sales. In the most recent quarter, revenue declined 6% to $5.3 billion while adjusted diluted EPS rose 6% to $1.23. Management affirmed full-year EPS guidance of 2%–5% growth and plans to continue dividend increases through 2028.
Read at 24/7 Wall St.
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