The chart below illustrates how tobacco product prices have steadily increased for years, while Altria's operating profit margin has grown with it. The company can afford it with its free cash flow; the current dividend payout ratio is 78%, which is a bit high but still quite manageable, and these layers of capital on the balance sheet serve as a nice safety net. Retirees have it hard in today's investing environment; inflation runs rampant, and things like bonds and savings accounts are getting eaten alive.