Altria Group (MO): One of the Best Defensive Stocks to Invest in Now

We just covered the 14 Best Defensive Stocks to Invest In Now and Altria Group, Inc. (NYSE:MO) ranks 14th on this list.

The top defensive characteristic of Altria Group, Inc. (NYSE:MO) stock is the nature of the product that the firm sells. Nicotine consumption is historically inelastic, meaning demand does not drop significantly when the economy weakens or prices rise. Altria has consistently offset a 10% annual decline in cigarette volume by raising prices. In 2025, while revenue after excise taxes fell slightly, its adjusted earnings per share actually rose by 4.4% to $5.42, proving its ability to extract profit from a shrinking market. The stock acts more like a high-yield bond than a traditional stock. Altria offers a dividend yield of approximately 6.5% to 6.6%.

Altria Group, Inc. (NYSE:MO) has increased its dividend for 18 consecutive years. In February, it declared a quarterly dividend of $1.06 per share, $4.24 annualized. When including share buybacks, the total shareholder yield exceeded 10% in early 2026, a rarity for a large-cap company. To protect its long-term future, the firm is de-risking its business model by moving away from traditional cigarettes. Shipments of its on! oral nicotine pouches rose 11% in the past year. In March, the company announced a national retail expansion of on! PLUS, aiming to capture more market share from competitors like Zyn. Analysts believe that as the FDA provides more clear pathways for smoke-free products in 2026, the headline risk for Altria is decreasing, making it a more comfortable hold for institutional funds.

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