Altria: A Buy After The Correction

Altria remains a buy, offering a 6.3% yield and a 60-year streak of dividend increases, with another hike expected August 27. MO's payout ratio has fallen to 89%, supporting sustainable, inflation-matching dividend growth, though limited room exists for extraordinary increases. Despite declining cigarette volumes and regulatory risks, MO offsets headwinds with price increases and potential growth in reduced-risk products. Trading at 12.3x earnings, MO offers stability and dependable returns at a valuation far below the market as a whole, making it a strong portfolio addition after the recent correction.

In this age of rising geopolitical tensions, tariffs, high-interest rates and high stock valuations, a stock that is fairly U.S.-centric, has limited currency risk and offers a low valuation and a high dividend yield is an attractive alternative.