Philip Morris International (PM), a leading tobacco company, has a reputation for paying healthy dividends. And strong growth in its primary IQOS smoke-free products business, along with its continued advancement in research and technology to strengthen its operations, should position the company well to maintain or raise its dividends. As such, we think the stock is a solid pick for investors looking for a steady stream of income. Read on.Incorporated in 1987, Philip Morris International Inc. (NYSE:PM) manufactures and sells nicotine-based products, related accessories and devices, and IQOS smoke-free products. PM’s shares have advanced 33.4% over the past year and 20.2% so far this year. The company delivered strong top and bottom-line results in its last reported quarter, driven by higher heated tobacco unit shipment volume in East Asia and Australia and favorable pricing. Since its market debut in 2008, PM has raised its annual dividend every year, amounting to a 160.9% total increase, or an 8.3% CAGR.
Tobacco companies benefit significantly from the highly addictive nature of their products. And thanks to PM’s attractive dividend yields and dividend increase history, we think it’s an ideal pick for income investors.
With the Federal Reserve’s decision to keep short-term interest rates anchored near zero and the stock market’s current fluctuations as the backdrop, we think PM could prove to be a solid bet from both stability and dividend viewpoints.