Altria Stock Is Interesting, but Here's What I'd Buy Instead

Altria has a huge 6.3% yield, but there are bigger risks than you may think.The big draw with Altria (MO 0.72%) is likely its lofty 6.3% yield. However, you have to consider the very material negatives associated with the business that backs that yield. If you are willing to take on a little extra risk for a high-yield stock like Altria, you might be better off with Hormel Foods (HRL +1.79%) and its roughly 5% yield instead. Here's why. Image source: Getty Images. The problem with Altria Altria has a high yield and has increased its dividend regularly. However, the company's most important business is selling cigarettes. While the company is classified as a maker of consumer staples, smoking is hardly a life necessity. In fact, the volume of cigarettes Altria sells has been steadily declining for years. For example, in 2025, cigarette volumes fell 10%. To be fair, Altria has been using price hikes and stock buybacks to support its revenue and earnings. That has allowed for ongoing dividend increases. But it is still a fundamentally challenged business. Hormel has a high yield and a turnaround plan Hormel Foods is also facing challenges right now, but they aren't as severe. It is a large food manufacturer with a focus on protein products, such as meat and nuts. That's actually fairly well aligned with current consumer trends. One of the big problems of late is that Hormel has had difficulty passing rising costs on to consumers. At this point, the company is refocusing on controlling costs and overhauling its portfolio, noting that it recently announced plans to sell its whole turkey business. ExpandNYSE: HRLHormel FoodsToday's Change(1.79%) $0.44Current Price$24.99Key Data PointsMarket Cap$14BDay's Range$24.34 - $25.0152wk Range$21.03 - $32.07Volume158KAvg Vol5.1MGross Margin15.45%Dividend Yield4.65% The goal of the sale is to focus on branded food products rather than commodity products, a theme that has been ongoing for Hormel. This is the first big move from the company's interim CEO, Jeff Ettinger. Ettinger is a respected former CEO who was brought out of retirement to help the company get back on track and train a successor. Notably, the efforts he's put into place have led to five consecutive quarters of organic sales growth (inclusive of the preliminary results just released for the first quarter of 2026). Essentially, the company looks like it is moving in the right direction. Hormel is a reliable dividend stock Hormel's 5% yield isn't quite as high as Altria's yield, but the business is fundamentally stronger. And, just as important, Hormel has increased its dividend annually for over 50 years, making it a Dividend King. So you know it has a firm commitment to returning value to investors via regular dividend increases. I think it is a better all-around story than Altria, given the full risk/reward profile.Read NextFeb 18, 2026 •By Thomas NielThis High‑Yield Dividend Could Make Patient Investors Rich in RetirementFeb 3, 2026 •By Joe TenebrusoWhy Walmart, Verizon, Altria, and Other Safe Dividend Stocks Jumped TodayJan 29, 2026 •By Joe TenebrusoWhy Altria Stock Dropped TodayJan 23, 2026 •By Will HealyAltria Group: Is This High-Yield Dividend Stock Too Cheap to Ignore?​Jan 22, 2026 •By Reuben Gregg BrewerShould You Forget Altria?

Why You Might Want to Buy This Unstoppable High-Yield Dividend Growth Stock Instead.Jan 14, 2026 •By Leo SunThe Smartest Dividend Stocks to Buy With $10,000 Right NowAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedAltria GroupNYSE: MO$67.50 (0.72%) $0.49Hormel FoodsNYSE: HRL$24.99 (+1.79%) $+0.44*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.