Philip Morris Increases Dividend By 3%, Becomes The Newest Dividend Achiever
Another year, another dividend increase for tobacco giant Philip Morris International (PM). On September 13th, it raised its quarterly dividend by 2.9%.
With the raise, PM has now increased its dividend 10 years in a row, each year since the spin-off from Altria Group (MO). This makes PM the newest member of the Dividend Achievers list, a group of stocks with 10+ consecutive dividend increases. You can see the entire list of all 265 Dividend Achievers here.
This is a difficult time for PM, due to declining smoking rates and toughening regulations. And yet, the company continues to raise its dividend each year. PM’s consistent dividend growth is the result of a very strong business model. It has a long history of steady growth, and dividends.
With a 100+ year operating history and a 3%+ dividend yield, PM fits Sure Dividend's definition of a blue-chip stock. You can see our entire list of nearly 70 blue chip stocks here.
This article will discuss PM’s recent dividend increase, and why it remains an attractive stock for dividend growth investors.
PM is a global tobacco company. It sells its products in more than 180 markets, outside the U.S., where Altria reigns. PM has six of the world's top international 15 brands, including the No. 1 global brand Marlboro.
PM’s financial performance has been negatively impacted by the strong U.S. dollar, which wiped away $1.3 billion of revenue in 2016 alone, but the core business continues to perform well. Organic revenue, excluding excise taxes, increased 4.4% in 2016. Adjusted earnings-per-share increased 12% for the year.