Altria Group's Dividend Appeal and the Emerging AI Energy Crisis
This article examines Altria Group, Inc. (NYSE:MO), a popular dividend stock, in light of the shifting tobacco industry and the burgeoning energy demands of artificial intelligence. While Altria remains a strong dividend payer, the article suggests considering alternative AI stocks with potentially greater upside and less risk.
Altria's Dividend and the Shifting Tobacco Landscape
Altria Group, Inc. (NYSE:MO), renowned for its Marlboro cigarettes, is a leading tobacco producer and marketer. The company faces the challenge of transitioning from traditional cigarettes to smoke-free alternatives. While dividend investors have long favored Altria, its future prospects are becoming more uncertain.
Oral nicotine salt pouches represent Altria's most successful foray into the smoke-free market. However, in the second quarter of 2025, traditional smokeable products still accounted for about 83% of the company's operating income. This highlights that smoke-free products are not yet a primary revenue driver for Altria Group, Inc. (NYSE:MO).
Altria's dividend history is a significant draw for income investors. The company has increased its dividends 60 times over the past 56 consecutive years. As of September 27, it offers a quarterly dividend of $1.06 per share and boasts a dividend yield of 6.45%.
The AI Energy Crisis: A Hidden Opportunity
Artificial intelligence (AI) presents a massive investment opportunity, but its energy demands are creating a hidden crisis. The power grids powering AI are straining, raising electricity prices, and utilities are struggling to meet the rising demand.
Even Sam Altman, the founder of OpenAI, acknowledged that "the future of AI depends on an energy breakthrough." Elon Musk went further, predicting that "AI will run out of electricity by next year." This energy crunch presents a unique opportunity for investors.
The "Toll Booth" Operator of the AI Energy Boom
One overlooked company possesses critical energy infrastructure assets positioned to capitalize on the coming AI energy spike. This company is a "toll booth" operator, profiting from the increasing demand for electricity from AI data centers.
This company owns critical nuclear energy infrastructure assets, strategically positioning it at the forefront of America’s next-generation power strategy. Furthermore, it’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
The company also plays a pivotal role in U.S. LNG exportation, a sector expected to boom under President Trump’s renewed “America First” energy doctrine. Trump's policies will increase U.S. LNG exports, allowing this company to collect fees on every drop exported. Furthermore, this company stands to benefit from Trump-era tariffs and the onshoring trend by rebuilding, retrofitting, and reengineering facilities returning to the US.
Why This Company is an Undervalued AI Play
Wall Street is beginning to recognize this company because it is quietly riding all of these tailwinds—without the sky-high valuation. Notably, this company is debt-free and holds a substantial cash reserve, approximately one-third of its entire market capitalization. It also possesses a significant equity stake in another fast-growing AI play, providing investors with indirect exposure to multiple AI growth engines without incurring a premium.
Excluding cash and investments, this company trades at less than 7 times earnings, despite being tied to the AI infrastructure supercycle, the onshoring boom driven by Trump-era tariffs, and a surge in U.S. LNG exports. This makes it an exceptionally cheap AI and energy stock with significant upside potential.
Capitalizing on AI's Disruption
AI is disrupting traditional industries, and investors should focus on companies that embrace this technological revolution. This company is not merely a hype stock; it generates real cash flows, owns essential infrastructure, and holds stakes in other major growth sectors.
The opportunity to invest in this company offers a potential 100+% return within 12 to 24 months. Investors can access in-depth investment research and exclusive insights for a low monthly subscription price.
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