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Altria raises dividends despite falling cigarette sales, relying on pricing power and buybacks.

Market News
13 Sep 2026
24/7 Wall Street
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Neutral
Altria raises dividends despite falling cigarette sales, relying on pricing power and buybacks.

Altria continues to increase its dividend payouts even as U.S. cigarette shipments decline by 10% annually. The company offsets falling sales by raising cigarette prices faster than consumption drops, maintaining strong profit margins and boosting adjusted operating income. Buybacks also enhance shareholder returns, with $8 billion returned through dividends and repurchases in one fiscal year. However, challenges like rising discount cigarette sales, inflation pressures, and illicit vaping products pose risks to this model, which depends on maintaining high margins to sustain dividends.

More News (MO)

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Altria's stable smokeable earnings and strong dividend yield keep it a Buy despite market risks

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