Philip Morris International Inc. (NYSE:PM) features prominently in the list of Top High Yield Stocks to Consider in October.
Philip Morris International Inc. (NYSE:PM) is a leading American tobacco firm, offering its products in more than 180 countries. The company is known for its robust payout ratio of 80%, which is sustainable given its ongoing transformation towards reduced-risk products. Smoke-free items, such as the IQOS heated tobacco system and ZYN nicotine pouches, represented 39% of revenue in 2024, with many markets now favoring these alternatives over traditional products. The acquisition of Swedish Match has fortified Philip Morris’s position in the rapidly expanding nicotine sector, and a recent court ruling dismissing a lawsuit over ZYN’s pricing has alleviated a major concern for investors.
IQOS, the flagship heat-not-burn product of Philip Morris International Inc. (NYSE:PM), achieved over $3 billion in net revenue and holds a commanding 76% share of the global heat-not-burn market. In Europe, adjusted sales volumes for IQOS increased by 9.1% as regulatory hurdles decreased, while Japan saw a 7.8% rise, bolstering its market share to 31.7%.
On September 19, Philip Morris International Inc. (NYSE:PM) announced an increase of 8.9% in its quarterly dividend, raising it to $1.47 per share. This hike marks the company’s 16th consecutive year of dividend growth, positioning it as an exceptional choice for a dividend capture strategy. As of September 27, the stock exhibited a dividend yield of 3.57%, with the ex-dividend date set for October 3.
Although PM presents a viable investment opportunity, we suggest exploring specific AI stocks that might offer higher growth potential and reduced risk. For those interested in discovering an undervalued AI stock poised to gain from Trump-era tariffs and the trend of onshoring, we recommend checking out our complimentary report on the best short-term AI stock.
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