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Altria Group: Generous dividend to roll on

Thiveyen Kathirrasan
Thiveyen Kathirrasan • 5 min read
Altria Group: Generous dividend to roll on
Holding company of cigarettes and cannabis adapts to market trends while keeping operations highly cash-generative.
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Holding company of cigarettes and cannabis adapts to market trends while keeping operations highly cash-generative

New York-listed Altria Group is a holding company of multiple wholly-owned large subsidiaries that makes and sells cigarettes (Philip Morris USA), machine-made large cigars and pipe tobacco (John Middleton Co), smokeless tobacco products, and wine (Ste. Michelle). It also holds significant stakes in companies that manufacture oral nicotine pouches (Helix Innovations), e-vapour products (JUUL Labs), and in Cronos Group, which is a global cannabinoid company.

Altria’s reportable segments are smokable products, smokeless products, and wine. Since Altria is a holding company, its source of funds comes from its wholly-owned subsidiaries consisting of cash received from the payment of dividends and distributions, along with cash dividends from interest owned from non-wholly-owned subsidiaries. Altria derives close to 90% of its revenue from smokable products, 10% from oral tobacco products, and the rest from wine-related products.

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