Altria Group

MO

Market cap $109B

Here is how Altria (MO) and Ollie's Bargain Outlet (OLLI) have performed compared to their sector so far this year.

Dividend growth is a reliable edge. Over long periods, companies that regularly raise their dividends have often outperformed the benchmark S&P 500 (^GSPC 0.72%), as sustained payout increases typically stem from stronger, growing earnings.

Finding top dividend stocks to invest in is one thing. Finding companies that can pay that dividend for years, and potentially decades, to come is a whole other story.

Altria is rated a buy, with its stable business model, high margins, and strong cash flow supporting solid returns and income. MO has moved past the failed JUUL acquisition, maintaining robust core operations and expanding into higher-margin smokeless products with new partnerships. Second-quarter results beat expectations, with EPS up 6% year-over-year, strong cash flow, and rising net margins despite declining cigarette volumes.

Altria remains a Buy due to its defensive nature, strong shareholder returns, and undervalued stock price despite ongoing cigarette volume declines. Altria's Q2 2025 results showed resilient EPS growth, expanding margins, and robust free cash flow, driven by pricing power and growth in oral tobacco products. The company's 6.45% dividend yield, ongoing buybacks, and conservative leverage support continued capital returns and financial stability.

Altria (MO) concluded the recent trading session at $64.92, signifying a -2.43% move from its prior day's close.

Altria Group's latest payout raise met my expectations, extending its dividend growth streak to 56 straight years. The tobacco giant's deal with KT&G is a low-risk way to cash in on growth in international markets. Altria Group's debt-to-EBITDA ratio remains at its target of 2x.

MO's oral segment OCI margin hits 68.7% as on! pouches boost profitability despite volume dips and rising competition.

The S&P 500 (^GSPC -2.71%) is hovering near its all-time highs and looks historically expensive at 31 times earnings, so it might not seem like the best time to shop for cheap stocks. However, investors should remember the S&P 500 is a market-cap-weighted index driven by massive companies that can overshadow the smaller but cheaper stocks.

Fourteen of the highest-yielding, 'safer' S&P 500 dividend stocks are currently attractively priced, with free cash flow supporting their payouts. Top ten S&P 500 dividend 'dogs' are projected to deliver 23.93% to 38.57% net gains by October 2026, based on analyst targets. Stocks like CAG, VZ, DOC, BMY, KVUE, CPB, UDR, VTRS, KIM, TFC, KEY, HPQ, T, and RF meet the ideal of dividends from $1K invested exceeding share price.