rewrite this title and make it good for SEOThis High-Yield Dividend King is Worth a Closer Look

Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco giant that is navigating through a shifting landscape as cigarette consumption continues to decline across North America. This industry trend has taken a toll on the company’s shipment volumes. Its core smokeable products segment saw domestic cigarette shipments fall by 13.7% year-over-year in Q1 2025, largely due to the rise of illicit e-vapor alternatives. Even its cigar shipments were down 2.9%.

However, Altria Group, Inc. (NYSE:MO) is not passively watching its traditional business erode. The 2023 acquisition of NJOY reflects a deliberate push into the smoke-free nicotine category. While still a small piece of the company’s portfolio, NJOY consumables showed promise, with Q1 shipment volumes up nearly 24% to 13.5 million units.

This evolving landscape naturally raises questions about dividend sustainability—a top concern for income-focused investors. Encouragingly, Altria Group, Inc. (NYSE:MO) trailing twelve-month free cash flow stood at $4.38 billion, with operating cash flow reaching $8.6 billion. These figures suggest the company is well-positioned to maintain its dividend, provided the underlying business remains stable.

Altria Group, Inc. (NYSE:MO)’s dividend history is notably strong. With 59 dividend hikes over the past 55 years, the company is a Dividend King, and its track record signals long-term reliability. Its 2024 dividend increase aligned with its mid-single-digit annual dividend growth target through 2028. A payout ratio of 60% appears reasonable, even amid operational challenges. In the latest quarter alone, Altria returned $1.7 billion to shareholders through dividends, underlining its commitment to income investors.

Despite facing headwinds, Altria Group, Inc. (NYSE:MO)’s strong cash flow, resilient margins, and attractive 7% dividend yield offer reassurance. In today’s uncertain market environment, where investors are increasingly shifting from speculative tech plays to income-generating and fundamentally solid businesses, Altria stands out as a compelling candidate for dividend-focused portfolios. The stock has surged by over 14% since the start of 2025, outperforming the broader market by a wider margin.

While we acknowledge the potential of MO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.