Altria Group, the parent company of Marlboro, is charting a new course for growth with a significant dividend increase and a strategic focus that moves beyond its traditional cigarette business. The company is making substantial progress in the oral tobacco category, attempting to transform its identity in a market often perceived as being in terminal decline.
A Notable Dividend Increase Captures Market Attention
Demonstrating a robust commitment to shareholder returns, Altria’s board has authorized a substantial dividend hike. The quarterly payout is rising by 3.9% to $1.06 per share. This adjustment pushes the stock’s annualized dividend yield to a highly attractive 6.3%, a figure that stands out to income-focused investors in the current economic climate.
Shareholders of record as of September 15th will receive this enhanced distribution on October 10, 2025. This move continues the firm’s long-standing and impressive track record of consistently raising its dividend payments over decades.
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Oral Tobacco Segment Emerges as Key Growth Driver
The most compelling part of Altria’s narrative is its success in the nicotine pouch segment, a bright spot that contrasts with the ongoing challenges in the combustible cigarette market. The company’s “on!” brand has become a major growth engine, delivering exceptional performance metrics:
- Shipment volumes for the second quarter surged by 26.5% year-over-year.
- The brand successfully captured an 8.7% share of the total U.S. oral tobacco market.
- Adjusted operating income for the oral tobacco category grew by 10.9%.
Navigating an Intensifying Competitive Landscape
Despite this strong internal performance, Altria faces a formidable challenge from well-established competitors. The market for nicotine pouches is currently dominated by Philip Morris International and its leading ZYN brand. To gain further ground, Altria must continue its aggressive marketing investments and strategic maneuvers to compete effectively against this industry titan.
A critical question for investors is whether Altria can sustain the impressive momentum of its “on!” brand over the long term and successfully secure a larger portion of the market from its powerful rivals.
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