Why Altria (MO) Might Be the Quiet Hero of Bear Markets
When markets start melting down, most investors scramble for safety. They flock to gold, bonds, or cash—anything to stop the bleeding. But there’s one category that often gets overlooked during turbulent times… and that’s dividend stocks.
More specifically, dividend growers like Altria (MO).
Now, I get it. A tobacco stock isn’t the flashiest name on Wall Street. It’s not going to dominate headlines like NVIDIA or Tesla.
But here’s the thing: while those names get tossed around by volatility like a ping pong ball, MO just keeps chugging along—handing out cash to shareholders and quietly outperforming in bear markets.
Let’s look at the bigger picture.
Altria has increased its dividend 58 times in the last 54 years. That’s right—through recessions, interest rate hikes, inflation spikes, tech crashes, and COVID… the checks kept coming.
Not only that, but the company has historically delivered solid price appreciation, especially when you factor in reinvested dividends.
And here’s the kicker: in 2025, as the market has been absolutely rocked by headline-driven selloffs, MO has held up better than most. While the S&P is down this year, MO is up about 10% — and that doesn’t even count the juicy dividend that’s currently north of 8%.
Why does it work?
Because when panic sets in, investors seek stability. And a stock like Altria—with steady cash flow, recession-resistant products, and a long history of rewarding shareholders—suddenly looks a lot more attractive than a high-growth name trading at 50x earnings.
Now, is MO perfect? Of course not.
There are long-term concerns around the tobacco industry, regulatory risk, and declining smoking rates. But those aren’t exactly new concerns—and Altria has managed to navigate them for decades, while also pivoting into smokeless products and strategic investments like its stake in Anheuser-Busch.
Bottom line: dividend investing is often dismissed as “boring.” But when the rest of the market is panicking, boring can be beautiful.
And Altria? It’s one of the most reliable names out there when it comes to delivering income and holding its ground in chaotic markets.
It’s why we own MO in our Dividends Forever Portfolio—where we’re currently sitting on a 40% gain in the stock price alone since we first bought in.
Add in the dividends, and it’s easy to see why we believe this is a name worth holding through any market cycle.
— Nate Tucci
P.S. To learn more about stocks like this, check out my Dividends Forever portfolio — and see how dividend investing can help you stay steady, no matter how the market behaves.
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