Philip Morris International – Dividend Increase

This article originally appeared on The Div-Net September 15, 2011

Philip Morris International (PM) recently raised its dividend by 20.3%! The new quarterly dividend is $0.77 per share, which is $3.08 annualized. This is a pretty hefty increase from the old quarterly dividend of $0.64.
 

This 20.3% raise in my dividend income from PM is just one reason why I love dividend growth investing! This is, effectively, like getting a 20% raise at work. The main difference is that I didn’t have to do ANYTHING to receive this raise. I didn’t have to kiss up to my boss, show up early, stay late or complete an extra project. The only thing I had to do was invest with PM, a high quality international tobacco company that I’m fairly bullish on.

The current yield as of close today on PM is 3.79%, which while pretty strong, is actually fairly low among tobacco companies. The yield based on the new payout is 4.55%. That is a great entry yield for a company that has excellent long-term prospects, in my opinion.

I’m currently long on PM, and am considering adding to my position. I think it’s a solid company, and it’s a major international player in the tobacco business.

Full Disclosure: I’m long PM.

Thanks for reading.

Comments

  1. says

    DM,

    Congrats on the 20% dividend increase on PM. I would like to point out that you just got another raise for doing nothing. MCD just announced a 15% increase in their dividend.

    You sly dog…

    Income Pirate

  2. says

    IP,

    You gotta love it, right? The market is very volatile right now, but cutting through it all I can only see my income rising and my reinvested dividends buying me more equities.

    Thanks for stopping by!

  3. says

    Very happy with the PM increase! I DCA (small purchases) through Sharebuilder whenever PM is under $65 and will significantly add to my position under $61.60. I think PM is the pick for the next 20 years.

    I had some real good news yesterday with LMT as they increased their dividend by 33%!

    I love DGR investing as 3 of my larger positions all increased their dividends this month (VZ is the other).

    Best of luck to all PM longs!

  4. says

    PD,

    I agree with you on PM being a STRONG pick for the next 20 years. The cigarette market in developing countries has a lot of room to grow. Just look at the prices in some of these countries.

    What’s your take on LMT? I’ve considered opening up twin positions in LMT and RTN as I feel both of them are pretty attractive in terms of earnings/price/dividends.

  5. says

    dukespook,

    I think PM is a strong pick. I missed the ex-dividend date on Friday due to a lack of available capital, but I will have some cash at the beginning of Sept.

    I am also long PM and MCD.

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