Key Points
- Dividend Increase: Quarterly dividend raised from $1.02 to $1.06; annual payout totals $4.24.
- Higher Payout Ratio: Dividend payout ratio for FY2025 is expected to reach 78%.
- Historical Performance: Since 2008, the compound annual growth rate of dividends has been about 8%, outpacing EPS growth over the same period.
- Investment Rating: Stifel reiterates a “Buy” rating and lifts the price target to $72.
- Business Footprint: Beyond traditional tobacco, Altria has expanded into nicotine pouches and e-vapor products.
2Firsts, August 29, 2025 — Altria Group, Inc. (NYSE: MO) said its Board of Directors has approved a 3.9% increase to the quarterly dividend, raising the per-share payout from $1.02 to $1.06 and bringing the annualized dividend to $4.24. Based on FY2025 EPS forecasts, the dividend payout ratio will rise to 78%.
Since the company’s 2008 spin-off, Altria has raised its dividend for many consecutive years, achieving a compound annual growth rate of around 8%, slightly above its steady EPS growth over the same period. Stifel noted that, supported by the company’s strong free cash flow generation, Altria’s dividend growth is likely to remain in the mid-single-digit range over the medium term.
In a research note dated August 21, Stifel maintained its “Buy” rating on Altria and increased its price target from $65 to $72, citing the company’s consistent dividend policy and robust cash-flow profile as key pillars of a constructive investment outlook.
In addition to traditional cigarettes and tobacco products, Altria continues to expand into next-generation nicotine offerings, including oral nicotine pouches and e-vapor devices.
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