Philip Morris International (PM) has experienced impressive stock growth over the past year, with an increase of over 30%. This upward trend is anticipated to persist, offering continued value for investors.
The company maintains a strong track record of consistent dividend increases, with expectations for another hike in September. This confidence is underpinned by improving financial health and a reduced payout ratio. A significant driver of this growth stems from the successful integration of Swedish Match, particularly with the performance of its ZYN product. However, potential challenges from market innovation, regulatory changes, and currency fluctuations remain notable considerations.
Despite a higher valuation, Philip Morris International is recommended as a 'buy'. Its robust growth outlook and attractive dividend prospects make it a compelling choice for investors focused on dividend growth. The company's strategic moves and market position suggest a promising future, reinforcing its appeal as a long-term investment.