The stock also offers a healthy dividend yield of over 3% of the share price. If its history as part of Altria were included, it would qualify as another Dividend King. While the HNB process is similar to the one used by vaporizers and e-cigarettes, devices such as the IQOS use tobacco rather than the liquid made for vaporizers.
Philip Morris posted a roughly 1.3% drop in cigarette sales volume during the first nine months of 2025. However, its sales volume of heated tobacco units (HTUs) rose 12.2% in those same three quarters, indicating that devices such as the IQOS have strong growth potential. Its primary offerings in this category are the devices and cartridges sold under its IQOS (widely believed to be an acronym for “I Quit Original Smoking”) brand and Zyn nicotine pouches.
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Are they the ultimate sin investment or an undervalued gem in a volatile market? With the landscape shifting beneath our feet, 2024 presents a unique set of challenges and opportunities for those eyeing the tobacco industry. This guide doesn’t just skim the surface; it dives deep, offering insights that could redefine your portfolio.
- More than 2.1 million youths in the US reported using e-cigarettes in 2023, with 10% of high school students vaping.
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- BAT’s journey from a traditional tobacco company to embracing new nicotine delivery systems underscores its adaptability and commitment to meeting diverse consumer needs in a changing world.
- The global expansion of IQOS, including the ILUMA model, has improved net income and enhanced margin mix.
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There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. Philip Morris International is a leading international tobacco company engaged in the manufacture and sale of cigarettes and other nicotine-containing products in markets outside the United States. Management’s vision is that these products ultimately replace cigarettes. British American Tobacco’s New Categories businesses grew a little faster than the rest of the company, gaining share versus the company’s overall revenues. Management believes that growth will accelerated during the second half of the year due to the roll-out of new products in the company’s New Categories/smokeless businesses.
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Universal’s adjusted earnings-per-share totaled $0.38 during the quarter, which was way weaker than the results seen in the previous quarter, when Universal generated a substantially larger profit. The Tobacco Operations segment buys and sells tobacco used to make cigarettes, cigars, pipe tobacco, and smokeless products. Universal buys tobacco from its suppliers, processes it, and sells it to large tobacco companies in the US and internationally. This article will analyze the prospects of 5 of the largest tobacco stocks that we cover in the Sure Analysis Research Database. Let’s take a look at a few things every investor should know about investing in tobacco stocks.
Given the propensity of localities to use tax increases on cigarettes, the situation will likely only get worse for tobacco stocks. The long-term decline in tobacco smoking explains why Altria has taken steps to diversify away from traditional cigarettes. So far, Njoy is delivering solid growth, although it still makes up a small part of the business.
While Altria has looked outside the company to diversify and cushion itself from the decline of cigarette sales, Philip Morris is pursuing more of an in-house strategy. Almost all of Altria’s sales come from the United States, where smoking rates have steadily declined over the past generation. According to the Centers for Disease Control and Prevention, the percentage of U.S. adults who smoked tobacco fell from 21% in 2005 to 11.5% in 2021.
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Look no further than Benzinga’s picks for the Best Online Brokerages. Once you set up an account, you’ll be ready to buy tobacco stocks. Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among best tobacco stocks others. The company manufactures and sells a variety of tobacco products, including cigarettes, tobaccos, cigars, rolling papers, and tubes.
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- The company’s Marlboro brand is the leading cigarette brand in the U.S. with a 43% share in 2020.
- Since its founding in 2005, Greenlane has not only championed quality and compliance but has also emerged as a pivotal force in the cannabis and vaping sectors.
- As we navigate through the evolving landscape of the tobacco industry, identifying stocks that not only withstand the test of time but also promise growth and stability is crucial.
- The tobacco segment includes the manufacture and sale of its various tobacco products, while the logistics segment distributes tobacco to product manufacturers.
British American Tobacco PLC (NYSE: BTI)
Although selling traditional cigarettes is highly profitable, the business is in decline and is expected to keep declining. Tobacco companies need to find new ways to grow and diversify their businesses. Buying tobacco stocks is as easy as buying any other kind of publicly traded company. The cigarette maker’s annualized average return was 20% during that time.
Tobacco Stock #3: Altria Group (MO)
Dividend sustainability varies by stock in this group, but overall, there is a lot for income investors to like when it comes to these 5 tobacco stocks. The global expansion of IQOS, including the ILUMA model, has improved net income and enhanced margin mix. Also, the acquisition of Swedish Match in 2022 has been accretive to EPS, with Zyn nicotine pouches driving exceptional revenue growth and accelerating PMI’s transition to smoke-free products. On May 14th, 2025, Imperial Brands reported results for the first half of fiscal year 2025. Revenue for tobacco and next generation products were up 3.2% as pricing and mix added 5.9% to results, offset by a 3.2% decline in volume.
To make matters worse for tobacco companies, most of the world’s smoking population rate looks much the same as the above chart. It has become abundantly clear that consumers around the world are eschewing tobacco products for health concerns. The tobacco industry has been a winner for investors for generations. Tobacco stocks tend to offer reliable high-yield dividends, and the product is considered recession-resistant since consumers buy it regardless of the state of the economy. Wisesheets turns the complex world of tobacco stock investment into a navigable path, offering you the clarity and data needed to make those crucial investment decisions.