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Philip Morris: Lock In A Solid Yield While The Market Is Confused


  • PM has a leading position in the smoke-free space, bolstered by strong growth from its IQOS heat-not-burn product.
  • It's seeing strong traction and further ILUMA launches across markets could accelerate growth.
  • Meanwhile, it pays an attractive dividend yield and is reasonably attractive at present for potential long-term income and growth.
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Pink piggybank stuffed with dollar bills


It's tempting to layer into very high yielding stocks right now, such as mortgage REITs, many of which now offer double-digit yields. However, those who prefer to sleep well at night may want to consider dividends that they can count on. Such I find the

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This article was written by

Gen Alpha profile picture

I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group Hoya Capital Income Builder. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM either through stock ownership, options, or other derivatives. 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.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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 (11)

Totally agree with your analysis. Long PM and it’s on sale with a solid safe and rising dividend. Great addition for long-term investors seeking safe dividends that will lead them to early retirement
bk25 profile picture
Good summary
How about UVV? VGR?
secorewb profile picture
Your article proves PM is a lower risk stock than the rest of the tobacco stocks, the dividend rate is proof.
You can one or the other but not both.
purpleboarder profile picture
@secorewb Well, if the market is irrational, you can have both.... BTI is at the mercy of exchange rates, and MO is diversified in InBev (and at the whims of the market for that investment). Many moving parts for all tobacco companies, litigation, market sentiment, macro events not created by tobacco companies. It is possible to have both...

- Long PM, BTI
secorewb profile picture
@purpleboarder I was thinking of a single stock, I own both MO and PM, MO riskier hence bought for dividend. Agree with you on multiple stocks.
If you are investor buying a tobacco stock to diversify, I would suggest PM.
racerkeith profile picture
Good Article, $PM is a solid investment, even though I hold both, I prefer $BTI. The lower cost/share, dividend is 60% higher, 25%+ growth potential from current value and the stock is at the bottom of the 52-week range.
ChuckXX profile picture
@racerkeith Since you own BTI, tell me something. On their website they list the dividends in British money (yes, I know they are England based) but my question is when you go thru the foreign currency exchange rates what do you actually end up with as a dividend in American Money. I love the yield from BTI and it appears that they have never cut it so Iam taking a serious look at it since I'm an older investor.
racerkeith profile picture
@ChuckXX I'm 65 and am buying back in at the current prices.
From the BAT website: "For holders of ADSs listed on the New York Stock Exchange (NYSE), the equivalent quarterly dividends receivable by holders of ADSs in US dollars will be calculated based on the exchange rate on the applicable payment date. A fee of US$0.005 per ADS will be charged by Citibank, N.A. in its capacity as depositary bank for the British American Tobacco American Depositary Receipt (“ADR”) programme in respect of each quarterly dividend payment."
purpleboarder profile picture
@ChuckXX Your dividend payment is at the mercy of the exchange rates that day. So dividend payments will look 'lumpy'...
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