Altria Group (MO) closed Friday at $72.19, up 2.25%, bucking a sharp downturn that saw the S&P 500 fall 2.6% on the day. The stock gained approximately 3.8% for the week, marking its fourth consecutive positive session, while the broader market posted its first weekly decline in ten weeks.
The outperformance comes as Washington remains a focal point for investors. Six Democratic senators, including Dick Durbin and Elizabeth Warren, sent a letter to Altria and Reynolds American on June 4, questioning their lobbying activities related to the Food and Drug Administration's new enforcement discretion policy. The policy could allow some manufacturers to sell vapes and nicotine pouches without a required license, potentially expanding the market, as reported by Reuters.
Altria responded to Reuters, stating the policy could help combat illegal products by combining enforcement with a broader regulated market for smoke-free alternatives. The stock's resilience underscores its role as a defensive play amid risk-off sentiment.
During Friday's session, Altria traded between $71.27 and $73.18, with volume around 8.0 million shares, according to StockAnalysis data. The stock now sits just under 3% below its 52-week high. Peers also saw gains: Philip Morris International rose 1.9% to $178.29, and British American Tobacco's U.S.-listed shares added 3.3%. Reynolds American, named in the Senate letter, is owned by BAT.
Fundamentally, Altria's narrative remains steady: cigarette volumes continue to decline, but high pricing and strong cash flows support shareholder returns. In April, the company reported first-quarter adjusted diluted EPS of $1.32, up 7.3% year-over-year, on net revenue of $5.43 billion, a 3.2% increase. Former CEO Billy Gifford described the start to the year as strong, noting the businesses are highly cash-generative, supporting dividends and buybacks.
Altria reaffirmed its 2026 adjusted diluted EPS guidance of $5.56 to $5.72, targeting growth between 2.5% and 5.5%. The company has since appointed Sal Mancuso as CEO, succeeding Gifford after the May 14 annual meeting. The board declared a quarterly dividend of $1.06, payable July 10 to shareholders of record by June 15. The ex-dividend date is June 15, meaning buyers after that date miss the payout.
Risks remain, however. The guidance assumes slower e-vapor growth and greater uncertainty for adult nicotine consumers. The smokeable segment continues to face weaker shipment numbers, and any tightening of FDA regulations or faster-than-expected volume declines could pressure the stock's recent gains.
With no earnings reports scheduled this week, investors are focused on regulatory developments, bond yield movements following Friday's selloff tied to jobs data, and positioning changes ahead of the June 15 dividend cutoff. Altria's next scheduled event is its Q2 earnings call on July 30.
