McQUADE KATHRYN B. purchased $101K of MO

The Trump administration plans to speed up approvals for smoke-free nicotine products like vapes and nicotine pouches, easing FDA review requirements. This benefits tobacco companies such as Altria (MO), Philip Morris (PM), and British American Tobacco (BTI), which face regulatory delays. The move aims to reduce illegal products but faces opposition from health advocates concerned about youth access.

Altria (MO) paid $6.96B in dividends against $6.95B in net income for FY2025, raising concerns about its dividend safety. Colgate-Palmolive (CL) covers its dividend with earnings and cash flow, but reported a Q4 loss. Altria's 10-year total return was 123%, outperforming Colgate's 55%.

Altria (MO) reported mixed Q2 results but raised FY 2026 EPS guidance and increased its dividend. The company also announced a new manufacturing agreement with Philip Morris, starting in 2027. The stock has a 6.45% dividend yield and has outperformed the S&P 500. An analyst reiterated a buy rating, citing strong capital returns and steady earnings growth.

Altria Group (MO) reported 24% total returns in 2026, outpacing the S&P 500's 14%. Shares fell after Q2 earnings missed estimates, with revenue at $5.35B and EPS at $1.37. The company faces long-term risks due to declining cigarette use and competition in smokeless products. Altria trades at 12x forward earnings with a 6.4% yield, but its strategy to sustain growth remains uncertain.

Altria Group (MO) subsidiaries Helix Innovations and NJOY sued the FDA over its 2021 PMTA rule, arguing it violates the Tobacco Control Act's 180-day review deadline. The lawsuit claims FDA delays begin with Acceptance and Filing Reviews. FDA has reduced its backlog but Altria seeks a court order to vacate the rule. MO stock traded between $54.70 and $77.06 over the past year, closing at $69.56 on Wednesday.

Altria (MO) raised its quarterly dividend by 4.7% to $1.11/share, yielding ~6.4% at $68.37. The company has a strong free cash flow history but faces revenue decline and high debt. It guided for mid-single-digit dividend growth through 2028 and has a new contract manufacturing deal with Philip Morris International.