Dear Reader,

If there’s one thing I’ve learned over three decades of investing, it’s this:

What you don’t own matters just as much as what you do.

That’s why I’ve always been drawn to the idea of “upgrading” your portfolio — replacing overhyped or outdated names with stronger, lesser-known opportunities.

It’s the thinking behind a strategy I’ve come to rely on…

One I call “Sell This, Buy That.”

I’ve used it for years to show my followers how to move out of big name, well-loved stocks that are on the verge of melting down… and into ones with the potential to deliver serious upside.

It’s the strategy that helped me win the Portfolios with Purpose investing competition… beating out some of the most respected names on Wall Street and outperforming the market by more than 10-fold.

And it’s the same kind of thinking that’s helped me build a long-term track record — including 41 recommendations that have gone on to return 1,000% or more.

I’ve put together a brand-new presentation where I walk through some of my latest “Sell This, Buy That” pair trades that you can view today at no cost.

These calls are a little contrarian… I’ll be the first to admit that.

But if you’re open to viewing the markets through a different lens, here’s a quick preview of what I’m recommending today:

SELL Amazon. BUY [Click to Reveal]
SELL Bank of America. BUY [Click to Reveal]
SELL Tesla. BUY [Click to Reveal]

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Watch my “Sell This, Buy That” broadcast now and get 7 free trade ideas

Sincerely,

Eric Fry
Senior Macro-Investment Analyst, InvestorPlace

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This Week’s Bonus Story

Is Altria Becoming More Than an Income Stock?

Submitted by Chris Markoch. First Published: 2/1/2026. 

Quick Look

• Altria’s stock is gaining momentum as strong cash flow, pricing power, and disciplined capital returns support both dividend stability and potential price appreciation.
• A nearly 7% yield and consistent EPS growth guidance position MO as an attractive option for investors seeking reliable income with upside potential.
• Next-generation products like on! nicotine pouches and NJOY are fueling a shifting narrative, suggesting Altria could evolve from a defensive play into a balanced income-and-growth stock.

Altria Group, Inc. (NYSE: MO) stock is off to a strong start in 2026, up more than 7.3%. However, MO shares slipped nearly 3% in midday trading on Jan. 29 after the company reported flat year-over-year (YOY) earnings.

The key question heading into the report was whether Altria could shift investor sentiment from a defensive income play to a revival story attractive to growth-oriented buyers.

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Trading at roughly 11x forward earnings and supported by one of the market’s most dependable dividends, Altria appears undervalued relative to its stability and cash generation. If EPS growth holds above roughly 3% annually, investors could see total returns in the 10–12% range through a combination of price recovery and the company’s sizable dividend.

With bond and money-market yields expected to ease alongside moderating inflation, equity-income names like Altria should attract renewed inflows. The stock’s technical reversal, an improving growth narrative and disciplined capital allocation suggest investors may finally get what they’ve been waiting for: capital appreciation paired with a market-crushing yield.

For long-term shareholders, Altria’s story is evolving. Once prized primarily for its dividend, the company is regaining fundamental strength, supported by steady innovation and fresh bullish momentum. For patient investors, this Dividend King may again demonstrate that income and growth need not be mutually exclusive.

Strong Fundamentals Support a Valuation Reset

In Altria’s Q4 2025 earnings report, management navigated a challenging year marked by persistent inflation and changing tobacco regulations, and reaffirmed full-year adjusted EPS growth guidance of 2–4%. For a mature consumer-staples company, that represents steady progress and reinforces Altria’s reputation for reliability as investors refocus on income-generating equities in a lower-rate environment.

Revenue stability continued to be anchored by smokeable products, which remain the profit engine even as cigarette volumes decline. Price increases, disciplined cost control and share buybacks help offset volume pressures.

Altria’s pricing power remains a competitive advantage. Net revenue in the quarter of roughly $5 billion demonstrated resilience and supported gross margins near 70%. Meanwhile, operating-income growth and a capital-efficient structure enabled the company to generate strong cash flow to fund dividends and reduce debt.

Dividend Power and Capital Discipline Continue to Attract Income Investors

Altria’s dividend growth and capital-return policies remain central to the investment case.

Management raised the annual dividend for the 59th consecutive year in 2025, marking nearly six decades of uninterrupted increases.

The current yield, 6.98% as of this writing, is among the most generous of any Dividend King and one of the highest in the consumer staples sector.

The payout is well supported by cash flow. Altria generated over $8 billion in operating cash flow in 2025 and maintained a payout ratio near 75% of adjusted EPS, leaving room for reinvestment and share repurchases.

The company repurchased roughly $1 billion of stock in 2025 and increased its repurchase authorization for 2026.

Strategic Moves Fuel the Next Phase of Growth

Beyond the attractive dividend, Altria’s growth strategy is starting to gain traction. Its smokeless and next-generation portfolio—led by on! nicotine pouches—continues to capture market share with double-digit volume growth. Management expects on! to become a meaningful earnings contributor within a few years, helping offset cigarette declines.

Altria’s U.S.-focused approach, active regulatory engagement and partnerships in alternative nicotine delivery are setting the company up for innovation-led, sustainable growth. In its presentation, management highlighted progress integrating its NJOY acquisition and advancing product submissions with the FDA, reinforcing long-term positioning in reduced-risk nicotine alternatives.

Technical Picture: Bulls Taking the Lead

As noted earlier, MO stock shows growing bullish momentum. After a steep correction through late 2025 that bottomed near $56—confirming a deep support level tested in April and May—shares have rebounded sharply.

The 50-day simple moving average (SMA), now at $58.97, has turned upward, signaling a short-term trend reversal. The recent breakout above that line suggests improving sentiment and a potential continuation toward the $64–66 resistance zone seen last fall. That range sits slightly above the consensus price target of $63.

Momentum indicators support the uptrend: the MACD has crossed above its signal line with expanding positive histogram bars, and volume has increased during recent advances—signs that institutional accumulation may be underway.

Short-term traders might view pullbacks toward $59 as buy-the-dip opportunities, while long-term investors could consider the current level an attractive entry ahead of dividend reinvestment season in February.

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