PM's solid fundamentals and commitment to innovation and cost efficiencies position the company well for sustained growth amid currency-related challenges.
Philip Morris (PM) outperformed the S&P 500 in 2024, driven by strong financials, a 4.5% dividend yield, and consistent cash generation exceeding $10 billion annually. Despite regulatory risks, PM's diversified portfolio, including smoke-free products like IQOS and ZYN, positions it for continued revenue and earnings growth in 2025. PM's 16-year dividend growth streak, coupled with a forecasted 20% EPS growth over the next two years, makes it a compelling income investment.
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Investors in the US stock market have enjoyed an excellent year of returns, but as the new year approaches it may be an opportunity to be tactically defensive. Among other catalysts, last week we saw a notable adjustment in the Fed's rhetoric, shifting interest rate policy expectations and initiating a jump in volatility.
Philip Morris International's strong Q3 2024 results show 2.9% organic shipment volume growth and double-digit revenue increase, highlighting its resilience in a tough market. The company's smoke-free portfolio drives growth with a 17% net revenue increase and 20% gross profit growth, outpacing its traditional combustible segment. Despite industry decline, Philip Morris expects $15 billion in 2024 smoke-free net revenues and 7.5% YoY EPS growth, supporting strong shareholder returns.
Philip Morris International is a wide-moat stock with significant upside due to its best-in-class smoke-free product portfolio and international exposure. The company's acquisition of Swedish Match and its strong financial performance, including robust EPS growth, support my strong buy rating. Despite inferior dividend metrics compared to competitors, PM's exemplary capital allocation has positioned it well for future growth and dividend acceleration.
Tobacco is traditionally a sleepy sector known for high dividend yields and a recession-proof business model, but one tobacco stock has delivered a surprising breakout this year. Philip Morris International (PM -0.93%) is up 38% so far in 2024 as it has successfully pivoted to next-generation smoke-free products, including Iqos heat-not-burn sticks and Zyn nicotine pouches.
Philip Morris (PM) reported earnings 30 days ago. What's next for the stock?
Philip Morris is driving strong growth through its smoke-free transformation, supported by innovation, global expansion, pricing power, and disciplined cost management.
This company is making all the right moves and running laps around the competition.
Betting on dividend growth can lead to strong returns over the long haul.
As November gets underway, Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the 25 worst S&P 500 (SPX) stocks to own this month , with data going back 10 years.