Is the Business Model of Altria Stock Finally About to Break?

Altria Group (NYSE: MO) stock has long beaten the odds. Since the release of the Surgeon General's report on smoking 60 years ago, usage has declined and tobacco companies like Altria had to pay out hundreds of billions of dollars in legal settlements.

These challenges didn't prevent Altria's stock or dividend from rising. However, with tobacco consumption continuing to fall, the company hasn't found other revenue sources to compensate for this drop. That situation should put shareholders on notice, forcing them to consider whether they should stay in Altria stock amid this uncertainty.

Despite Altria's situation, the stock hasn't collapsed amid its struggles, and the factor preventing Altria from falling off a cliff is likely addiction. Once one becomes addicted to tobacco, it becomes exceedingly difficult to live without it. This factor appears to have enabled Altria to largely maintain current revenue levels through price increases.

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Source Fool.com