Altria (NYSE: MO) isn't a household name in the consumer staples sector, but its main brand is probably one you know. Indeed, its Marlboro cigarette brand has a nearly 42% share of the U.S. cigarette market.

The S&P 500 index has a paltry 1.2% dividend yield. The average consumer staples stock has a yield of 2.7%. Consumer staples maker Altria (NYSE: MO) has a dividend yield of 7.4%.

In 2024, sales of unauthorized flavored disposable vapes in the U.S. reached approximately $2.4 billion, accounting for 35% of e-cigarette sales in outlets like convenience stores and supermarkets, according to private retail sales data reviewed by Reuters.

The latest data from the US Centers for Disease Control and Prevention shows that vaping is climbing more quickly than smokers quit cigarettes.

First, the very nature of tobacco creates customer loyalty and gives companies like Altria significant pricing power. Tobacco contains nicotine, an addictive substance that keeps customers coming ...

They only get lumped into the consumer staples space because of the addictive nature of nicotine. That is what ... 2020 was a good year demand-wise for Altria's cigarette business.