Philip Morris International Inc. (PM)
Philip Morris: Undervalued Growth Stock At An Inflection Point
Philip Morris, the world's largest publicly traded tobacco company, is now a $155 billion (by market cap) global tobacco and nicotine behemoth. PMI has increased its dividend for 16 consecutive years with a 10-year dividend growth rate of 3.9%. Management has executed an incredible pivot, which is positioning the business to not just survive, but thrive over the coming decades.
With 10% Gains This Year 3M Stock Appears To Be A Better Pick Over Philip Morris
Given its better prospects, we believe 3M stock (NYSE: MMM) is a better pick than Philip Morris stock (NYSE: PM). Although these companies are from different sectors, we compare them because of their similar revenue base of around $30-35 billion.
Philip Morris: Gen Z Likes Zyn
Zyn, Philip Morris International's nicotine pouch product, has demonstrated exceptional growth, particularly among Gen Z, and holds a significant market share in the US. Despite Zyn's success, Philip Morris' stock has underperformed, creating an opportunity for investors as the market undervalues Zyn's potential. Zyn's strong performance is reflected in Philip Morris' Q1 2024 earnings report, with robust volume growth and exceeding revenue expectations.
Philip Morris: Heavily Discounted With Potential Double-Digit Upside
Philip Morris is a high-yielding stock with a reliable source of income and a growing qualified dividend. The current dividend sits at 5.1%. Although lower than peer yields, the Company has shown the best combination of price appreciation and dividend income. The current price of PM is up and may experience another run-up when interest rates come down, making it an ideal time to accumulate shares.
Philip Morris International: The Smoke-Free Future Is Now Here
Philip Morris International is narrowly outside the top 10 holdings in my dividend growth stock portfolio. The company's receptiveness to shifting consumer preferences is paying off in a big way, with plans to be 2/3 smoke-free by 2030 remaining attainable. PM's A-rated balance sheet is supported by an interest coverage ratio of above 10.
