Tobacco Giant Altria: The Highest-Returning U.S. Stock of the Past 50 Years

According to research by Wharton School professor Jeremy Siegel, Altria Group has delivered highly successful stock returns in the United States over the past half-century. First, let’s look at a chart showing that since 1968, Altria’s average annual stock return has been 20.6%.

Altria is a large multinational company primarily engaged in tobacco, food, beer, and financial services, with operations in more than 180 countries and regions worldwide. Research shows that tobacco industry stocks have generated average returns exceeding those of some of the most innovative sectors, such as computers, satellites, and biotechnology.

Over the past 30 years, U.S. tobacco sales have reached tens of billions of dollars, and returns in the tobacco industry have outperformed many other sectors. Part of the rise in tobacco stock prices has been driven by overseas business, and gains in Altria shares had long already offset increases in tobacco taxes.

Since 1950, as inflation has risen, the prices of tobacco products in the United States have also continued to climb, allowing Altria to earn greater profits. Tobacco stocks have tended to have relatively low valuations and high dividend yields, and over the decades, tobacco has delivered enormous returns.

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