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Bank of America Trims Altria (MO) Target While Keeping Buy Rating

Altria Group, Inc. (NYSE:MO) is included among the Best Stocks for a Dividend Achievers List.

On December 19, Bank of America analyst Lisa Lewandowski lowered the firm’s price target on Altria Group, Inc. (NYSE:MO) to $64 from $66. She kept a Buy rating on the shares. Looking toward 2026, Lewandowski said the biggest open issue for consumer staples remains consumption growth. Valuations across the sector remain uneven. In her year-ahead note, she added that “there feels little to get them off the sidelines in ’26 until fundamentals signal a greater turning of the tide.”

For Altria Group, Inc. (NYSE:MO), fundamentals have held up better than volumes might suggest. Cigarette shipments continue to decline, and the company has been able to raise prices enough to offset much of the volume pressure. Tobacco users tend to be sticky. Some trade down to cheaper brands, but many stay with what they know and absorb the higher cost. That dynamic has helped keep revenue and earnings relatively stable.

The dividend remains the core of the investment case. Altria Group, Inc. (NYSE:MO)’s payout is large and consistent, which naturally raises questions when volumes fall. If price increases ever stop covering the gap, pressure would build. For now, that risk appears contained. Cash flow remains solid, and earnings still support the payout. The company targets a payout ratio of about 80% of adjusted earnings per share. Adjusted EPS removes one-time items and gives a clearer view of recurring operating performance. That framework provides some flexibility, even in a slow-growth environment.

Altria Group, Inc. (NYSE:MO) has a portfolio of well-known tobacco brands, including Marlboro, Black & Mild, Copenhagen, Skoal, and Virginia Slims.

While we acknowledge the potential of MO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MO and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 13 Top Tech Stocks Paying Consistent Dividends.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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