Can Altria's on! Build Share as Nicotine Pouches Keep Growing?

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%.

Philip Morris International (PM) stock rose 2.1% after updating its Q3 2026 EPS guidance to $2.29-$2.34, exceeding estimates. The company also raised its full-year 2026 EPS forecast to $8.35-$8.50, citing favorable currency impacts. Analysts increased price targets to $205-$225. PM's defensive profile and smoke-free products supported the stock amid broader market declines.

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.

Philip Morris (NYSE:PM) received FDA authorization for 11 nicotine-pouch products, including higher-strength Zyn Ultra pouches. The company aims to expand its market share in the fastest-growing US nicotine category, but lower pricing and increased investment may impact profitability. The FDA cited lower harmful constituents compared to other tobacco products. PM plans to invest more in Zyn as competition intensifies, particularly against British American Tobacco's Velo brand. However, the succe

Philip Morris International (NYSE: PM) raised its full-year adjusted diluted EPS forecast to $7.28-$7.43, reflecting 10.7%-12.7% growth. CEO Jacek Olczak highlighted strong pricing power and profit growth at the Barclays Global Consumer Conference. The stock, trading at $185.07, is 16.9% overvalued relative to its GF Value™ of $158.36, with a 3.16% dividend yield and a 73% payout ratio.