3 Best Tobacco Stocks & Companies in 2025

Investing in Tobacco Stocks

By Jeremy Bowman – Updated Oct 29, 2025 at 4:24 PM | Fact-checked by Robin Hartill, CFP

Key Points

Altria Group, producing Marlboro, topped market returns at 20% annually from 1968-2017.
Tobacco stocks deliver reliable dividends, yet face shifts due to declining cigarette use.
Companies are diversifying with next-gen products like vapes and nicotine pouches.

The tobacco industry may be reviled by some, but it has been a big winner for investors for much of its history. Throughout the 20th century, tobacco stocks were among the best performers, benefiting from an addictive, highly profitable, recession-proof product, plus a reputation for generous dividends.

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A field of green tobacco plants. — Image source: Getty Images.

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According to Wharton professor Jeremy Siegel, Altria Group (MO -1.31%), the domestic maker of the Marlboro brand, was the best-performing stock on the market from 1968 to 2017 when including reinvested dividends. The cigarette maker's annualized average return was 20% during that time.

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Did You Know...

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Altria Group (NYSE:MO)	$94.7 billion	7.31%	Tobacco
Philip Morris International (NYSE:PM)	$224.7 billion	3.82%	Tobacco
British American Tobacco (NYSE:BTI)	$111.5 billion	6.02%	Tobacco

Data as of Nov 2, 2025.

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1. Altria Group

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NYSE: MO

Altria Group

Today's Change

(-1.31%) $-0.75

Current Price

$56.38

Key Data Points

Market Cap

$95B

Day's Range

$56.33 - $58.08

52wk Range

$50.08 - $68.60

Volume

16M

Avg Vol

8.1M

Gross Margin

71.63%

Dividend Yield

0.07%

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NYSE: PM

Philip Morris International

Today's Change

(-0.99%) $-1.44

Current Price

$144.32

Key Data Points

Market Cap

$225B

Day's Range

$143.18 - $145.44

52wk Range

$116.12 - $186.69

Volume

137K

Avg Vol

6.3M

Gross Margin

64.37%

Dividend Yield

0.04%

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3. British American Tobacco

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NYSE: BTI

British American Tobacco

Today's Change

(-0.18%) $-0.09

Current Price

$51.19

Key Data Points

Market Cap

$112B

Day's Range

$51.03 - $51.52

52wk Range

$34.82 - $59.29

Volume

3.4M

Avg Vol

4.3M

Gross Margin

64.78%

Dividend Yield

0.06%

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cronos Group. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.