Philip Morris – A Dividend Stock To Consider

Philip Morris (PM) – A Dividend Stock to Consider. As the market continues to hit new all-time highs, fewer and fewer stocks are attractive in today’s market environment. In today’s post, we will talk about Altria’s spin-off brother Philip Morris International Inc. (PM). Altria focuses sales in the USA and Philip Morris focuses sales internationally.

Philip Morris International Inc. (PM) Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best-selling product of the company is Marlboro. Philip Morris International is often referred to as one of the companies comprising “Big Tobacco”. 

Philip Morris Dividend Stock

Philip Morris Dividend History, Growth, and Yield

Philip Morris is up over 21% year to date as of this writing. The stock has had a great run for the year, and I think it still has room for more upside potential. The Company is now transforming its business model amid the rapid rise in the popularity of smoke-free products. 

We will now look at Philip Morris's stock dividend history, its growth, and yield. We will then determine if it’s still a good buy at current prices.

Philip Morris has been growing its dividend for 13 years since its spin-off from Altria Group in 2008 making the stock a Dividend Contender. In the last 13 years, Philip Morris stock has had an average dividend growth rate of 8.5%. I love it when a company grows its dividend higher than the rate of inflation as this will provide me with buying power for years to come. Philip Morris’s past 5-year dividend growth average is 3.25%, much lower than its ten-year average, which is very concerning though. 

So, the dividend growth rate has slowed down compared to its first 13-year average. This is concerning as a dividend growth investor. As a dividend growth investor, we would like to see companies continue to grow its dividend faster than inflation. A dividend growth rate average of only 3.25% a year is a little better than the rate of inflation.

Something significant to note is that Philip Morris stock continued to pay its dividend during the most challenging period in the last 100 years for many companies. Most businesses and industrials were cutting or suspending their dividends payments last year during the COVID-19 pandemic; Philip Morris stock continued to pay out its dividend and in fact, the company increased it. That is very impressive. That tells me everything I need to know about the management focus on the dividend policy and dividend safety. 

1 2 3 4
View single page >> |

Disclosure: Long PM.

Author Bio: My name is Felix, and I am a Dividend Growth Investor who has been investing in dividend growth stocks for the past seven years. I also run a YouTube channel ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.