Key Points
Consumer staples stocks gained today even as the S&P 500 fell 1.7%.
Altria now pays a 6.6% dividend yield.
The company announced the national rollout of its On! Plus nicotine pouch this week.
Shares of Altria (NYSE: MO) were among the winners today, even as there was no major news out from the Marlboro-maker.
Instead, the tobacco giant seemed to benefit from a broader flight to safety as stocks tumbled for the second day in a row on fears of an extended conflict in Iran. Investors moved into defensive, dividend-paying stocks, and Altria was a winner as the tobacco sector is known for both its recession-proof positioning and high dividend yields. Altria currently offers a dividend yield of 6.6%.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The stock closed up 2.9% on the news.
Image source: Getty Images.
Why Altria is suddenly hot
After today's gains, Altria is now up 15% year-to-date. Today's move seemed clearly motivated by a rotation into defensive stocks as the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) rose 0.8% even as the S&P 500 fell 1.7%. Altria is well-positioned to benefit from that shift.
Altria's big tobacco peers, Philip Morris International and British American Tobacco, both gained today, but finished up less than 1%.
What's next for Altria
Altria's business seems to be on more stable ground these days after struggling for years with regulatory pressure, including its disastrous investment in JUUL.
Earlier this week, Altria said it was expanding nationwide retail availability of On! Plus, a direct competitor with Zyn, which could drive market share gains in the fast-growing oral nicotine pouch segment.
Looking ahead, Altria's near-term performance should be determined by the broad market trend and bets around the war. We'll get a first-quarter update from Altria in a month. If the On! Plus rollout is showing results, the stock could get another boost.
Should you buy stock in Altria Group right now?
Before you buy stock in Altria Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,049,793!*
Now, it’s worth noting Stock Advisor’s total average return is 898% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 27, 2026.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
