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By Brian Nelson, CFA
Altria (MO) recently reported decent second quarter results with revenue and non-GAAP earnings per share coming roughly in-line with consensus expectations. Revenue net of excise taxes increased 1.2% year-over-year in the quarter, while adjusted diluted earnings per share advanced 2.8% from the last year’s period.
Management had the following to say about the results:
In the second quarter, our operating companies continued to deliver against the priorities we outlined at the start of the year – advancing our smoke-free portfolio, strengthening our traditional tobacco businesses and delivering significant returns to shareholders.
In smoke-free, Helix expanded on! PLUS to 120,000 stores nationwide, engaged in trial-generating activities and prepared for additional line extensions to come later this year. In smokeable products, PM USA advanced its data-driven, total portfolio approach to drive profitability as Marlboro Cowboy Cut generated strong interest among premium smokers and Basic continued to gain traction in discount.
We delivered strong first-half results, driving adjusted diluted EPS growth of 4.9%, and returned nearly $3.9 billion to shareholders through dividends and share repurchases combined. This performance reflects steady, disciplined execution and confidence in our full-year plan, which allowed us to narrow our earnings guidance for the year.
Altria continues to be very shareholder-friendly. In the second quarter, the company repurchased 0.8 million shares and had $665 million remaining under its $2 billion share repurchase program, which expires at the end of the year. Altria paid dividends of $1.8 billion in the second quarter of the year. Looking to 2026 full year adjusted diluted earnings per share guidance, Altria narrowed its range to $5.61-$5.72 (was $5.56-$5.72), representing a growth rate of 3.5%-5.5% from a base of $5.42 in 2025. Shares of Altria yield 6.2% at the time of this writing, and the company remains a core holding in the High Yield Dividend Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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