Altria Group: Invest in the Dividend Stock Now?

Last Updated: 16. November 2023By

You are likely to have come across the Altria stock when looking for dividend-strong securities. The security regularly appears on the watchlists of dividend hunters. They look at the dividend yield of 9.13% in 2022 and 9.42% in 2023e and are pleased: “That’s more than on the savings account!”.

Is the cigarette empire running out of air? In fact, various indications suggest that smoking bans in most countries and increased health awareness are depriving the Altria Group of its business foundation. As you can see from the graph, the company has had better times. But there is hope. E-cigarettes and cannabis products offer potential for launching new product lines. In addition, Altria holds a significant stake in the large brewery Anheuser-Busch Inbev.

Hope for new business areas A look at the fundamental key figures shows that sales and earnings development are more or less stagnant. The new business areas are being discussed, as evidenced by the discussion about the approval of cannabis products in Germany. But it can’t be the fault of the German Ampel coalition that the cannabis business isn’t taking off worldwide.

Chart picture of the Altria Group stock With a series of lower highs and lower lows, the security is in a downtrend. In the course of the last 12 months, the share has lost around 9%, so the dividend is gone again. The last daily candles have sent fairly reliable sell signals. Of course, this can change quickly if the new business areas get going. However, you should only venture long entries when the security draws suitable formations in the chart.

Conclusion The lack of smoke signals in pubs shows that the business with tobacco is dead. You can see from the chart whether the new business areas can awaken the imagination of the stock market!