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Cigarette producer Altria (MO) reported 1Q23 earnings Tuesday morning. While they confirm that smoking is in secular decline I still like the stock. Cigarette volume declined 11.4% year over year resulting in a 3% decline in revenue. Nevertheless, MO reaffirmed its full-year EPS guidance of $4.98-$5.13. At a current $47.50 – therefore – shares can be had for 9.5x current year earnings.

In addition, MO pays an attractive dividend of nearly 8%. MO is trying to transition to smokeless products though I’m skeptical about that. The argument here is that there are enough puffs left in this cigar butt to more than justify the current price.

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