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Philip Morris: Is It A Good Dividend Investment?

Bela Lakos profile picture
Bela Lakos


  • To estimate the stock's fair value, we used dividend discount models and scenario analysis and compared our results to estimates based on traditional price multiples within the tobacco industry.
  • While Philip Morris may have a growth potential ahead due to new opportunities in the smoke-free tobacco market, the risks related to potential regulations need to be kept in mind.
  • For these reasons, we assign PM stock a neutral rating.

Marlboro cigarettes empty packs



Philip Morris International Inc. (NYSE:PM) operates as a tobacco company working to deliver a smoke-free future and evolving portfolio for the long-term to include products outside of the tobacco and nicotine sector.

Today, we have decided to write about

This article was written by

Bela Lakos profile picture
Petroleum engineer with an enthusiasm for investing, accounting and personal finances.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (8)

josephaoppenheim profile picture

PM is only 2.5% in my 23 dividend growth stock portfolio and like to buy more on dips. I also own MO and BTI.
Cindy Lou IV profile picture
It's overpriced but it's a great company that sells addicting products even though they're in the propaganda BS mode saying they're going to steer away from that and the next 10 years that's all a bunch of bull
Long PM a very good investment but you have to buy it with a significant margin of safety like any stock
Cindy Lou IV profile picture
@Always Bullish why do you have to buy it with a margin of safety?
Dicktater143 profile picture
I’m pretty sure it’s illegal to question PM just ask the PM fanboys who hang out exclusively on Altria’s stock thread casting stones .
hugh74jones profile picture
I agree with a neutral rating at best for PM. The yield is not as attractive as is for MO and BTI, which are among my income stock holdings. Further, since the March 2020 market brief sharp decline, PM has traded considerably lower.
Cindy Lou IV profile picture
@hugh74jones whatever it's almost $100. That's what it was before covid
Mo is the best. Bti and pm are superb too. Epd and mmp are fantastic. Arcc, main and tslx are lovely income.
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