Altria Returns $4 Billion to Shareholders in First Half of 2025

Altria Group, Inc. (MO) underscored a shareholder-first approach in the first half of 2025, returning more than $4 billion through dividends and share repurchases. This figure highlights the company’s consistent cash-generating ability, even as it navigates a challenging operating environment marked by declining cigarette volumes and competitive pressure in smoke-free alternatives.Dividends remain the backbone of Altria’s capital return strategy. The company distributed $3.5 billion in dividends in the first half, reaffirming its longstanding policy of paying out the majority of earnings to shareholders. Complementing this, Altria repurchased 10.4 million shares at an average price of $57.71, deploying $600 million in buybacks. In the second quarter alone, Altria spent $274 million to repurchase 4.7 million shares, contributing to the overall buyback effort. As of June 30, $400 million remained available under the company’s $1 billion share repurchase program, which is expected to be fully executed by the year-end.Supporting these significant capital returns is Altria’s solid balance sheet, with a total debt-to-EBITDA ratio of 2.0x as of June 30, 2025, in line with its target. This financial strength provides the flexibility to sustain shareholder returns while maintaining a stable leverage profile and disciplined financial management.Altria’s capital return underscores management’s confidence in the underlying cash flow profile of its tobacco and smoke-free portfolio. For investors, the $4 billion milestone is less about optics and more about predictability. Altria continues to prioritize returning capital, reinforcing its role as one of the most reliable income plays in the consumer staples sector.MO’s Capital Return Stands Out Amid Competitor StrategiesPhilip Morris International Inc. (PM) focused on advancing its smoke-free product expansion rather than returning capital through share repurchases. Reflecting its shift toward next-generation tobacco alternatives, Philip Morris strategically allocated resources to grow its key brands such as IQOS, ZYN and VEEV. The company’s financial strength is underscored by a disciplined approach, targeting a net debt-to-adjusted EBITDA ratio of about 2.0x by 2026 to support sustainable growth.Turning Point Brands, Inc. (TPB) maintained a prudent financial position, reporting total gross debt of $300 million and net debt of $190.1 million as of June 30, 2025, supported by $109.9 million in cash. Instead of prioritizing investments in growth areas such as the Modern Oral segment, Turning Point Brands did not carry out any share repurchases during the period. Turning Point Brands continues to focus on expanding market presence and enhancing product offerings, directing capital toward strategic initiatives.MO’s Price Performance, Valuation & EstimatesShares of Altria have lost 1.7% in the past month compared with the industry’s decline of 0.4%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.77X, down from the industry’s average of 15.21X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MO’s 2025 and 2026 earnings implies year-over-year growth of 5.3% and 2.9%, respectively.Image Source: Zacks Investment ResearchAltria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO): Free Stock Analysis Report Philip Morris International Inc. (PM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks