Altria Group announces shareholder meeting outcomes, dividend

Published 15/05/2025, 18:38
© Reuters

RICHMOND, Va. - Altria Group, Inc. (NYSE:MO), currently trading at a modest P/E ratio of 9.6 and boasting an impressive 70.8% gross profit margin, conducted its Annual Meeting of Shareholders today, resulting in the election of its board nominees and approval of key financial plans and executive compensation. The company also declared a quarterly dividend, maintaining its commitment to shareholder returns. According to InvestingPro analysis, Altria’s stock appears slightly undervalued based on its Fair Value assessment.

Shareholders elected all 11 board nominees outlined in Altria’s 2025 Proxy Statement for a one-year term. In addition, the assembly ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the year and approved the compensation of named executive officers on an advisory basis. Furthermore, the 2025 Performance Incentive Plan and the 2025 Stock Compensation Plan for Non-Employee Directors received approval.

Following the meeting, Altria’s Board declared a regular quarterly dividend of $1.02 per share, which is scheduled for payment on July 10, 2025, to shareholders on record as of June 16, 2025. The ex-dividend date is also set for June 16, 2025. Future dividends will be subject to board discretion. InvestingPro data reveals that Altria has maintained dividend payments for 55 consecutive years, with a current yield of 7.2%, making it one of the highest-yielding stocks in its sector.

Altria’s portfolio includes leading manufacturers such as Philip Morris USA Inc., John Middleton Co., and U.S. Smokeless Tobacco Company LLC, among others. The company, which has delivered a strong 32.8% return over the past year, has been vocal about its mission to lead the transition of adult smokers to smoke-free alternatives, an initiative that includes investments in oral nicotine pouches, e-vapor products, and heated tobacco stick products through its joint venture, Horizon Innovations LLC. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.

The company also holds equity investments in Anheuser-Busch InBev SA/NV and Cronos Group Inc. Altria’s operating companies’ brand portfolio includes Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!®, and NJOY®.

Final voting results from the Annual Meeting will be filed with the U.S. Securities and Exchange Commission in a Current Report on Form 8-K. This article is based on a press release statement.

In other recent news, Altria Group has reported a strong start to 2025, with earnings per share (EPS) of $1.23, surpassing analysts’ expectations of $1.19. The company’s revenue for the first quarter reached $5.26 billion, exceeding the anticipated $4.62 billion. This robust performance was driven by heightened profitability in Altria’s Smokeable products division, despite a reported 13.7% decline in cigarette volume. The company’s Smokable Products segment saw a margin increase to 64.4%, with adjusted operating company income growing by 2.7%. In addition to these results, Altria repurchased 5.7 million shares and paid $1.7 billion in dividends during the quarter.

On the ratings front, S&P Global Ratings upgraded Altria Group’s credit rating to ’BBB+’ from ’BBB’, citing the company’s strong credit metrics, profitability, and cash flow. Stifel analysts have also raised the price target for Altria shares to $63 from $60, maintaining a Buy rating, following the company’s reaffirmation of its financial guidance for 2025. Altria continues to focus on expanding its smoke-free product pipeline, despite challenges such as the removal of its NJOY ACE e-vapor product from the market due to a patent dispute.

Despite these setbacks, Altria remains committed to developing a competitive next-generation smokeless product portfolio. The company is making strides in refining its e-vapor strategy and introducing upgraded nicotine pouch products. Altria’s On! nicotine pouch brand holds an 8.8% share of the oral tobacco category, marking it as the second-largest nicotine pouch brand in the U.S. S&P Global Ratings anticipates that Altria will maintain solid credit metrics over the next few years, with the expectation that the company will sustain its industry-leading operating profit margin and leverage in the low-2x area.

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