Image Source: TradingView
By Brian Nelson, CFA
On January 29, Altria (MO) reported mixed fourth quarter results with revenue coming in ahead of the consensus forecast, but non-GAAP earnings per share missing the mark. Revenue net of excise taxes fell 0.5% in the quarter, while adjusted diluted earnings per share were flat on a year-over-year basis. In the fourth quarter, Altria repurchased 4.8 million shares for a total cost of $288 million and had $1 billion remaining under its $2 billion share repurchase program, which expires on December 31, 2026. The company paid dividends of $1.8 billion in the fourth quarter.
Management had the following to say about the results:
2025 was a year of continued momentum for Altria, marked by strong financial performance, strategic progress across our smoke-free portfolio, new relationships in support of our long-term growth goals and significant cash returns to shareholders. For the full year, we grew adjusted diluted earnings per share by 4.4% and returned $8 billion to shareholders through dividends and share repurchases combined.
Altria expects to deliver 2026 full-year adjusted diluted earnings per share in a range of $5.56-$5.72, representing a growth rate of 2.5%-5.5% from a base of $5.42 in 2025. Its 2028 enterprise goals are noteworthy. It plans to deliver a mid-single-digits adjusted diluted earnings per share compounded annual growth rate (CAGR) in 2028 from a $4.87 base in 2022. Through 2025, it has put up an adjusted diluted earnings per share CAGR of 3.6% from the 2022 base. We like that Altria is targeting a progressive dividend goal of mid-single-digits dividend per share growth annually through 2028. The company remains a core holding in the High Yield Dividend Newsletter portfolio. Shares yield 7.1%.
—–
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.
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.