Altria stock dividend raised 4.7% as Stifel reaffirms buy rating

Altria Group Inc. (NYSE:MO) has increased its quarterly dividend by 4.7% to $1.11 per share, according to Stifel's reaffirmation of its Buy rating and $77.00 price target. This represents a $4.44 annual payout, with a 78% payout ratio based on fiscal year 2026 estimated earnings per share. The dividend yield now stands at 6.13%.

Stifel analyst Matthew Smith highlighted Altria's consistent dividend increases over the past 56 years, which have grown at a compound annual rate of over 7%, slightly surpassing earnings per share growth. The company's strong free cash flow generation, share repurchases, and consistent earnings per share growth are expected to support continued medium-term dividend growth.

Altria is currently undervalued, trading at a P/E ratio of 14.28. The company has increased its dividend for 56 consecutive years, boasting a compound annual growth rate of over 7%. Stifel expects continued mid-single digit dividend growth in the medium term, supported by robust free cash flow generation, share repurchases, and consistent earnings per share growth.