When the Market Collapses, This Is the Stock to Own
Michael Miller ; 2025-10-21 13:31:05
So far this year, Altria Group Inc. (NYSE: MO) has offered a benefit that is relatively unusual for high-yield stocks. The share price has risen 26% since the start of the year. The S&P 500 is 14% higher in that time. Megacap tech companies are considered the stock market leaders this year. However, Amazon.com Inc. (NASDAQ: AMZN) remains flat in 2025, and Apple Inc. (NASDAQ: AAPL) is up 2%.
24/7 Wall St. Key Points:
- Altria Group Inc. (NYSE: MO) is probably the safest high-yield stock.
- The tobacco company has raised its dividend annually for over 50 years.
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Among the stocks that pay large dividends, Altria is also the safest, based on its long-term performance. Its 6.45% yield is based on a forward dividend of $4.24. Over the past 56 years, it has raised its dividend 60 times. The median age of Americans is 39 years.
In terms of decades-long high yields, the two most often mentioned in the same breath as Altria are Dow Inc. (NYSE: DOW) and Pfizer Inc. (NYSE: PFE). Pfizer’s stock is down 10% this year. Dow’s is down 42% this year, and it recently cut its dividend.
In total, Altria has paid out $32 billion in dividends over the fiscal years 2020 to 2024. It has also purchased $8 billion of its shares during the same period.
In the most recently reported quarter, Altria’s revenue was down 6% to $5.3 billion. However, its adjusted diluted earnings per share (EPS) were up 6% to $1.23. It 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: Billy Gifford, Altria’s chief executive officer, commented, “Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter.”
Almost all of Altria’s revenue comes from sales of cigarettes, and there is a theory that many investors are hesitant to buy its stock for this reason. However, the dividend is a significant incentive to offset that.
Another Reason to Invest
Another reason to consider investing in Altria is the potential risk to the global economy. People typically do not cut back on cigarette smoking in tough economic times. Altria’s dividend is unlikely to disappear, as the company’s balance sheet is excellent.
The stock market has become perilous, according to those who believe it has reached its peak. President Trump has threatened to impose high tariffs on imports from several major nations, which could drive up U.S. inflation. His latest threat is a 30% tariff on Mexican imports. Mexico is the second-largest trading partner of the United States.
An increase in tariffs and the effects on inflation mean American consumers’ buying power will be hit. That, in turn, threatens U.S. gross domestic product (GDP). Under those circumstances, Altria may be the best stock to own. That is, if investors can ignore its tobacco business.
Altria Stock Price Prediction and Forecast 2025-2030
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