Altria Group (MO) Surged in 2025 Amid Strong Cash Flows and Shareholder Payouts

Altria Group, Inc. (NYSE:MO) is one of the Best Dividend Stocks of 2025.

A close-up of an assembly line with a blend of tobacco products.

The company maintains a reliable dividend track record, backed by its strong cash flow. Its overall business performance remains healthy. In the first quarter of 2025, the smokeable products segment showed solid growth in adjusted operating income, largely driven by the Marlboro brand. Meanwhile, in the oral tobacco category, the on! brand continued to gain traction despite a competitive environment, with Helix making well-placed investments to support its growth.

Altria Group, Inc. (NYSE:MO)’s shareholders benefited from robust returns, thanks to both dividends and stock buybacks, all while the company continued investing toward its long-term strategy. During the first quarter of 2025 alone, $1.7 billion was returned to shareholders through dividends. Over the past twelve months, the company generated $8.6 billion in operating cash flow, with free cash flow reaching $4.38 billion. This strong financial position suggests the company has room to further increase its dividend payments going forward.

Altria Group, Inc. (NYSE:MO) has raised its payouts 59 times in the past 55 years. Currently, it offers a quarterly dividend of $1.02 per share and has a dividend yield of 6.94%, as of June 26. The stock has surged by over 12% in 2025 so far.

While we acknowledge the potential of MO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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