Altria Picked by UBS as Safe Haven Dividend Stock

Altria Group, Inc. (NYSE:MO) is one of the best stocks for a retirement stock portfolio.

The stock was highlighted by UBS equity strategists as one of the companies that offer “safe haven” qualities, marked by strong operational performance, low stock price volatility, and a substantial dividend.

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

The company offers a dividend yield close to 7% and has a beta of just 0.5, meaning its stock remains relatively stable during market turbulence while delivering a return that’s about 60% higher than the yield on a 10-year Treasury bond.

Trivariate Research also included Altria Group, Inc. (NYSE:MO) in one of its defensive stock baskets. The firm, led by Adam Parker, pointed out that Altria tends to perform well during market downturns, while also showing strong price momentum and trading at a valuation lower than its historical average.

Over the past few years, Altria Group, Inc. (NYSE:MO) stock has gained considerable ground, partly due to growing interest in the smokeless tobacco market. The company produces On! nicotine pouches, and its shares rose 30% last year and another 15% this year, through June 12 (not including dividends), reaching their highest level in six years. While that rally may raise some concerns, the nearly 7% dividend offers investors a sense of stability and income.

Altria Group, Inc. (NYSE:MO) has raised its dividends 59 times in the past 55 years, which makes it a reliable option for income investors.

Altria Group, Inc. (NYSE:MO) maintains a broad portfolio spanning both the tobacco and cannabis sectors. By leveraging its fully owned subsidiaries and strategic investments, the company aims to offer leading product options for adult consumers while also focusing on delivering strong returns to shareholders through dividend payouts and long-term growth.

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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