Shares of Altria Group (MO +1.76%) climbed 11.4% in February, according to data from S&P Global Market Intelligence. A giant in the tobacco and nicotine sector, Altria Group's steady sales are seen as a safe haven amid market uncertainties, such as the current panic over software stocks and geopolitical conflicts.
Like other consumer staples, Altria Group shares have risen steadily this year, up around 20% year to date, excluding dividends. Here's why the stock was rising yet again last month, and whether it is a buy for your portfolio right now.
NYSE: MO
Key Data Points
A formula for earnings growth
Altria Group owns brands such as Marlboro (cigarettes), Black & Mild (cigars), and on! (nicotine pouches). It gets the majority of its revenue from cigarette sales in the United States.
Cigarette use is declining in the country, with total cigarette volumes down 10% for Altria in fiscal year 2025, as reported at the end of January. However, Altria manages these volume declines quite well through price increases, leading to net revenue for smokeable products declining just 1.5% year-over-year in 2025, with a slight increase in operating earnings.
Along with a steady buyback program that has reduced shares outstanding by 14.5% over the last 10 years, Altria Group's free cash flow per share keeps climbing and has hit a record of around $5.40 over the last 12 months. This is the fuel for its dividend payment, which grew to $1.06 a quarter at the end of February, up from $1.02 in the same quarter a year ago.
Image source: Getty Images.
Should you buy into Altria Group stock?
Investors love falling back on steady dividend payers like Altria Group during market uncertainty. The stock has outperformed the U.S. market indices in 2026, with shares now trading at a price-to-earnings ratio (P/E) of 16.55 and a dividend yield of 6.1%, its lowest yield since before the COVID-19 pandemic.
Dividend growth should continue for years to come, but this is clearly not as attractive a stock as it was a few years ago, when tobacco businesses were hated by Wall Street. Altria Group is going to eventually run out of cigarette customers in the United States when most finish the transition to different nicotine products, such as pouches or vaping.
The company is trying to gain inroads into these new nicotine categories, but with minimal success. Nicotine pouches are a tiny part of Altria's operations, while its vaping initiatives have burned shareholders many times. It invested over $10 billion in Juul before writing it down to zero, and recently bought the vaping company NJOY for over $3 billion, which hasn't shown much of a return yet.
With a higher P/E and a lower dividend yield, Altria Group stock does not look like a buy right now after its recent 2026 run-up.
