Dividend Comparison: Coca-Cola vs. Altria
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Dividend Yield Comparison: Altria boasts a 6.3% dividend yield, significantly higher than Coca-Cola's 2.7%, yet both are Dividend Kings with over 50 years of annual increases, indicating their appeal and stability.
- Challenges for Altria: Despite having a loyal customer base, Altria's cigarette sales are projected to decline by 10% in 2025 in the North American market, posing a significant threat to its core business.
- Coca-Cola's Resilience: Coca-Cola achieved a 1% increase in case volumes and a 5% rise in organic sales in 2025, demonstrating the strong appeal of its brands even as consumers shift towards healthier options.
- Investment Risk Assessment: While there is no immediate risk of a dividend cut for Altria, the long-term decline of its core business suggests that conservative dividend investors should favor Coca-Cola's stability and lower risk profile.
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Analyst Views on MO
Wall Street analysts forecast MO stock price to fall
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 66.000
Low
57.00
Averages
65.00
High
72.00
Current: 66.000
Low
57.00
Averages
65.00
High
72.00
About MO
Altria Group, Inc. operates a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products and oral tobacco products. The smokeable products segment consists of combustible cigarettes and machine-made large cigars. The oral tobacco products segment includes moist smokeless tobacco (MST) products and oral nicotine pouches. Its wholly owned subsidiaries include manufacturers of both combustible and smoke-free products. In combustibles, it owns Philip Morris USA Inc. (PM USA), and John Middleton Co. (Middleton), which are cigarette manufacturers. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), a global MST manufacturer, Helix Innovations LLC (Helix), a manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio. The brand portfolios of its operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Altria Celebrates America's 250th Birthday with Community Investments
- Community Investment Plan: Altria plans to provide over $8 million in funding over the next three years through PM USA to support agricultural education and tobacco-growing communities, aiming to strengthen long-term relationships with farmers and promote local economic development.
- University Donations: Altria will donate $2 million each to the University of Kentucky and Virginia Tech to support academic and extension capacity in tobacco-growing communities, ensuring sustainability and innovation in agricultural education.
- Employee Engagement: Altria aims to mobilize nearly 6,000 employees through volunteerism and charitable giving, targeting 25,000 volunteer hours annually by 2030 to enhance connections between employees and their communities.
- Emergency Fund Establishment: The company will establish a total of $4.1 million in donor-advised funds to support local needs and future disaster relief in key tobacco-growing communities, assisting farmers and communities affected by natural disasters in rebuilding their livelihoods.
See More
Dividend Comparison: Altria vs. Coca-Cola
- Dividend Yield Comparison: Altria (NYSE: MO) boasts a 6.3% dividend yield, significantly higher than Coca-Cola's (NYSE: KO) 2.7%; however, this high yield is indicative of underlying business risks, particularly as smoking rates continue to decline in the North American market.
- Declining Sales Volume: Altria experienced a troubling 10% drop in cigarette sales in 2025, and while the company has attempted to offset this decline by raising cigarette prices, its diversification efforts have resulted in billions in write-offs, highlighting the challenges it faces.
- Coca-Cola's Resilient Performance: In contrast, Coca-Cola managed to increase case volumes by 1% and organic sales by 5% in 2025, demonstrating strong brand loyalty and market resilience despite consumer shifts towards healthier options.
- Investment Risk Assessment: Although there is no immediate risk of a dividend cut for Altria, long-term investors should be wary of its declining core business; in comparison, Coca-Cola presents a more stable investment with a solid financial standing, investment-grade credit rating, and a reasonable payout ratio.
See More
Dividend Comparison: Coca-Cola vs. Altria
- Dividend Yield Comparison: Altria boasts a 6.3% dividend yield, significantly higher than Coca-Cola's 2.7%, yet both are Dividend Kings with over 50 years of annual increases, indicating their appeal and stability.
- Challenges for Altria: Despite having a loyal customer base, Altria's cigarette sales are projected to decline by 10% in 2025 in the North American market, posing a significant threat to its core business.
- Coca-Cola's Resilience: Coca-Cola achieved a 1% increase in case volumes and a 5% rise in organic sales in 2025, demonstrating the strong appeal of its brands even as consumers shift towards healthier options.
- Investment Risk Assessment: While there is no immediate risk of a dividend cut for Altria, the long-term decline of its core business suggests that conservative dividend investors should favor Coca-Cola's stability and lower risk profile.
See More
U.S. Stocks Near All-Time Highs as Investors Eye Tech Giants' Earnings
- Strong Market Performance: The S&P 500 and Nasdaq Composite indices reached new all-time highs in April, rising over 8% and 13% respectively, indicating robust market resilience despite ongoing geopolitical tensions and AI disruption concerns, reflecting investor confidence in tech stocks.
- Earnings Pressure on Tech Giants: Next week, five of the 'Magnificent Seven' companies will report earnings, with market expectations for them to demonstrate sufficient revenue growth to justify their high AI expenditures; Alphabet, Amazon, Meta, and Microsoft have all seen stock price increases of over 10% this month, highlighting the market's keen interest in their performance.
- Federal Reserve Meeting Impact: This is expected to be Jerome Powell's last meeting as chair, with the market widely anticipating that the Fed will keep interest rates unchanged, although rising oil prices could complicate future monetary policy, necessitating close attention to how this dynamic may affect the market.
- Cautious Investor Sentiment: As the traditional market adage 'Sell in May' approaches, investors remain wary of potential downside risks, particularly in light of poor software stock performance and rising oil prices, which could further dampen market sentiment.
See More
Altria (MO) Q3 2024 Earnings Call Transcript
See More
Top Dividend Stocks for Stability Amid Market Volatility
- Walmart's Stability: Walmart (WMT) showcases its ability to maintain profitability amid economic fluctuations with a 0.74% dividend yield and 53 consecutive years of dividend increases, reporting $713.2 billion in revenue for FY 2022, surpassing the combined revenues of Alphabet and Microsoft, highlighting its strong market position.
- Coca-Cola's Brand Advantage: Coca-Cola (KO) ensures stable cash flow with a 2.73% dividend yield and 64 consecutive years of dividend increases, leveraging its asset-light business model and global distribution network, with a payout ratio of approximately 67%, demonstrating sustainable profitability across economic conditions.
- Altria's Pricing Power: Altria (MO) maintains a 6.50% dividend yield and a record of 60 dividend increases, utilizing its strong brand and pricing power to sustain profitability during economic downturns, with an expected payout ratio around 80%, ensuring returns for investors.
- Investment Value of Dividend Stocks: These three companies, recognized as 'Dividend Kings', provide stable cash flows amid market uncertainties, appealing to investors seeking safe investments, underscoring the significance of high-quality dividend stocks in volatile markets.
See More
Altria Celebrates America's 250th Birthday with Community Investments
- Community Investment Plan: Altria plans to provide over $8 million in funding over the next three years through PM USA to support agricultural education and tobacco-growing communities, aiming to strengthen long-term relationships with farmers and promote local economic development.
- University Donations: Altria will donate $2 million each to the University of Kentucky and Virginia Tech to support academic and extension capacity in tobacco-growing communities, ensuring sustainability and innovation in agricultural education.
- Employee Engagement: Altria aims to mobilize nearly 6,000 employees through volunteerism and charitable giving, targeting 25,000 volunteer hours annually by 2030 to enhance connections between employees and their communities.
- Emergency Fund Establishment: The company will establish a total of $4.1 million in donor-advised funds to support local needs and future disaster relief in key tobacco-growing communities, assisting farmers and communities affected by natural disasters in rebuilding their livelihoods.
See More
Dividend Comparison: Altria vs. Coca-Cola
- Dividend Yield Comparison: Altria (NYSE: MO) boasts a 6.3% dividend yield, significantly higher than Coca-Cola's (NYSE: KO) 2.7%; however, this high yield is indicative of underlying business risks, particularly as smoking rates continue to decline in the North American market.
- Declining Sales Volume: Altria experienced a troubling 10% drop in cigarette sales in 2025, and while the company has attempted to offset this decline by raising cigarette prices, its diversification efforts have resulted in billions in write-offs, highlighting the challenges it faces.
- Coca-Cola's Resilient Performance: In contrast, Coca-Cola managed to increase case volumes by 1% and organic sales by 5% in 2025, demonstrating strong brand loyalty and market resilience despite consumer shifts towards healthier options.
- Investment Risk Assessment: Although there is no immediate risk of a dividend cut for Altria, long-term investors should be wary of its declining core business; in comparison, Coca-Cola presents a more stable investment with a solid financial standing, investment-grade credit rating, and a reasonable payout ratio.
See More
Dividend Comparison: Coca-Cola vs. Altria
- Dividend Yield Comparison: Altria boasts a 6.3% dividend yield, significantly higher than Coca-Cola's 2.7%, yet both are Dividend Kings with over 50 years of annual increases, indicating their appeal and stability.
- Challenges for Altria: Despite having a loyal customer base, Altria's cigarette sales are projected to decline by 10% in 2025 in the North American market, posing a significant threat to its core business.
- Coca-Cola's Resilience: Coca-Cola achieved a 1% increase in case volumes and a 5% rise in organic sales in 2025, demonstrating the strong appeal of its brands even as consumers shift towards healthier options.
- Investment Risk Assessment: While there is no immediate risk of a dividend cut for Altria, the long-term decline of its core business suggests that conservative dividend investors should favor Coca-Cola's stability and lower risk profile.
See More
U.S. Stocks Near All-Time Highs as Investors Eye Tech Giants' Earnings
- Strong Market Performance: The S&P 500 and Nasdaq Composite indices reached new all-time highs in April, rising over 8% and 13% respectively, indicating robust market resilience despite ongoing geopolitical tensions and AI disruption concerns, reflecting investor confidence in tech stocks.
- Earnings Pressure on Tech Giants: Next week, five of the 'Magnificent Seven' companies will report earnings, with market expectations for them to demonstrate sufficient revenue growth to justify their high AI expenditures; Alphabet, Amazon, Meta, and Microsoft have all seen stock price increases of over 10% this month, highlighting the market's keen interest in their performance.
- Federal Reserve Meeting Impact: This is expected to be Jerome Powell's last meeting as chair, with the market widely anticipating that the Fed will keep interest rates unchanged, although rising oil prices could complicate future monetary policy, necessitating close attention to how this dynamic may affect the market.
- Cautious Investor Sentiment: As the traditional market adage 'Sell in May' approaches, investors remain wary of potential downside risks, particularly in light of poor software stock performance and rising oil prices, which could further dampen market sentiment.
See More
Altria (MO) Q3 2024 Earnings Call Transcript
See More
Top Dividend Stocks for Stability Amid Market Volatility
- Walmart's Stability: Walmart (WMT) showcases its ability to maintain profitability amid economic fluctuations with a 0.74% dividend yield and 53 consecutive years of dividend increases, reporting $713.2 billion in revenue for FY 2022, surpassing the combined revenues of Alphabet and Microsoft, highlighting its strong market position.
- Coca-Cola's Brand Advantage: Coca-Cola (KO) ensures stable cash flow with a 2.73% dividend yield and 64 consecutive years of dividend increases, leveraging its asset-light business model and global distribution network, with a payout ratio of approximately 67%, demonstrating sustainable profitability across economic conditions.
- Altria's Pricing Power: Altria (MO) maintains a 6.50% dividend yield and a record of 60 dividend increases, utilizing its strong brand and pricing power to sustain profitability during economic downturns, with an expected payout ratio around 80%, ensuring returns for investors.
- Investment Value of Dividend Stocks: These three companies, recognized as 'Dividend Kings', provide stable cash flows amid market uncertainties, appealing to investors seeking safe investments, underscoring the significance of high-quality dividend stocks in volatile markets.
See More
