Altria Group Inc. (NYSE: MO)

Altria Group is the largest tobacco company in the United States, manufacturing and selling Marlboro—the best-selling cigarette brand in America—through its Philip Morris USA subsidiary. The company also holds a 10% stake in Anheuser-Busch InBev and has invested in smoke-free alternatives including the NJOY e-cigarette brand. Altria's Marlboro commands roughly 43% of the US cigarette market, a dominance that has persisted for decades.

Altria earns revenue from the sale of cigarettes, smokeless tobacco (Copenhagen, Skoal), and oral nicotine pouches (on! brand), with pricing power that allows regular price increases to offset declining cigarette volumes. The company returns virtually all free cash flow to shareholders through dividends and buybacks.

Philip Morris Companies, Altria's predecessor, was founded in 1847 in London. The company rebranded as Altria Group in 2003 to distance itself from tobacco litigation. Altria spun off Philip Morris International in 2008 and Kraft Foods in 2007. A $12.8 billion investment in Juul Labs in 2018 was largely written off as the e-cigarette company faced regulatory and legal crises.