STAMFORD, CT - Philip Morris International Inc. (NYSE: NYSE:PM), a leading international tobacco company, announced an increase in its regular quarterly dividend from $1.30 to $1.35 per share, marking a 3.8% rise. This new dividend rate translates to an annualized payout of $5.40 per share. Shareholders of record as of September 26, 2024, will be eligible for the dividend, which is payable on October 10, 2024.
The company, known for its portfolio of cigarettes and smoke-free products, has been investing in the development of innovative smoke-free alternatives since 2008, with expenditures totaling over $12.5 billion. Philip Morris's smoke-free products, which are sold in 90 markets globally, accounted for approximately 38% of its net revenues in the first half of 2024. The company's commitment to a smoke-free future is further emphasized by its acquisition of Swedish Match, a company specializing in oral nicotine delivery.
Philip Morris International has also received authorization from the U.S. Food and Drug Administration for certain IQOS devices and General snus products as Modified Risk Tobacco Products, with renewal applications currently under review.
In addition to its tobacco and nicotine offerings, Philip Morris has expressed ambitions to venture into the wellness and healthcare sectors. Through its Vectura Fertin Pharma business, the company aims to contribute to health and wellness by leveraging its life sciences expertise.
The information regarding the dividend increase is based on a press release statement from Philip Morris International.
In other recent news, Philip Morris International has seen several favorable adjustments to its financial outlook. BofA Securities raised the company's stock target to $139 from $125, maintaining a Buy rating. This update comes after the company's CEO, Jacek Olczak, confirmed an adjusted diluted earnings per share (EPS) forecast for 2024 at a recent conference. The projected EPS range is $6.33 to $6.45, reflecting a 5.3% to 7.3% increase from the previous year.
Philip Morris continues to focus on smoke-free alternatives, which accounted for about 38% of the company's net revenues in the first half of 2024. This commitment is further demonstrated by a significant $232 million investment into its Owensboro, Kentucky manufacturing facility to increase the production capacity for ZYN nicotine pouches. This expansion is expected to generate 450 direct new jobs and approximately $277 million in annual regional economic impact.
In addition to BofA Securities, Stifel and Goldman Sachs have expressed confidence in the company's potential market performance. Stifel has increased the company's stock price target to $138 from $120, reiterating a Buy rating. Meanwhile, Goldman Sachs has added Philip Morris International to its US Conviction List. These are the recent developments for Philip Morris International.
InvestingPro Insights
Philip Morris International Inc. (NYSE: PM) has demonstrated a consistent commitment to shareholder returns, as evidenced by its recent dividend increase. This marks the 17th consecutive year that the company has maintained or raised its dividend, showcasing a reliable income stream for investors. According to InvestingPro Tips, this consistency is a testament to the company's stable financial footing and its ability to generate sufficient cash flow.
InvestingPro Data highlights the company's robust financial health, with a notable Gross Profit Margin of 63.87% over the last twelve months as of Q2 2024. This impressive margin is a clear indication of Philip Morris's ability to control costs and maximize profitability from its sales. Additionally, the company's Return on Assets stands at 14.51%, which signifies efficient use of its assets to generate earnings.
Despite trading at a high Price/Earnings (P/E) Ratio of 22.18, the company's stock has experienced a strong return over the last three months, with a 23.61% price total return. This performance is indicative of investor confidence and the stock's potential for growth. For those seeking more insights, there are additional InvestingPro Tips available, providing a deeper analysis of Philip Morris's financials and market performance.
For investors and analysts looking to further understand Philip Morris's valuation and future prospects, more comprehensive tips and real-time metrics are available on the InvestingPro platform at https://www.investing.com/pro/PM.
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