Had You Invested $1,000 in Altria or Philip Morris 10 Years Ago, Here's What You'd Have Now

"Altria stayed focused on the U.S. market, leaning on Marlboro's pricing power while building a smoke-free portfolio through NJOY, the on! nicotine pouch brand, and a heated tobacco joint venture. Philip Morris went global and moved aggressively into smoke-free products, acquiring Swedish Match (home of ZYN nicotine pouches) and scaling IQOS across international markets."

"On price alone, both stocks trailed the S&P 500 over 10 years. But these are among the most dividend-intensive stocks in the market, and stripping out income misrepresents what investors actually earned. Dividends substantially change the investment outcome for both stocks over this horizon."

"Altria's quarterly dividend grew from roughly $0.565 per quarter in early 2016 to $1.06 today, nearly doubling. Philip Morris went from $1.02 per quarter in early 2016 to $1.47 by late 2025. Reinvesting those payments over 10 years adds substantial value that the price chart does not show."

Altria and Philip Morris faced declining cigarette consumption a decade ago but adopted divergent strategies. Altria concentrated on the U.S. market, leveraging Marlboro's pricing power while building smoke-free offerings through NJOY, on! nicotine pouches, and heated tobacco ventures. Philip Morris pursued global expansion and aggressive smoke-free product development, acquiring Swedish Match and scaling IQOS internationally. Both companies offset structural cigarette volume declines through pricing increases, new product categories, and consistent dividend growth. While price returns alone showed both stocks underperforming the S&P 500 over ten years, dividend reinvestment substantially altered outcomes. Altria's quarterly dividend nearly doubled from $0.565 to $1.06, while Philip Morris increased from $1.02 to $1.47, demonstrating that total returns for long-term income-focused investors exceeded price appreciation alone.

Read at 24/7 Wall St.