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Philip Morris sets quarterly dividend at $1.30 per share

Published 2024/06/07, 17:28
© Reuters.

STAMFORD, CT - Philip Morris International Inc. (NYSE: NYSE:PM), a leading international tobacco company, announced a regular quarterly dividend of $1.30 per common share, which is scheduled to be paid on July 8, 2024. Shareholders on record by June 21, 2024, will be eligible for the dividend, with the ex-dividend date also set for June 21, 2024.

The company, known for its cigarettes and smoke-free products, has been shifting its focus towards a smoke-free future. This strategic pivot involves investing over $12.5 billion since 2008 into the development and scientific substantiation of alternative smoke-free products for adult smokers. Philip Morris International aims to eventually cease the sale of cigarettes entirely.

In its endeavor to transform its product portfolio, PMI acquired Swedish Match, which is recognized for its oral nicotine delivery systems. This acquisition has bolstered PMI's position in the smoke-free market, particularly with the IQOS and ZYN brands. The U.S. Food and Drug Administration has granted Modified Risk Tobacco Product status to certain IQOS devices and consumables as well as to Swedish Match's General snus.

As of the end of 2023, PMI's smoke-free offerings were available in 84 markets worldwide, with an estimated 33 million adult users. These products contributed to about 37% of the company's total net revenues for the full year of 2023.

Expanding beyond tobacco and nicotine, PMI has set its sights on the wellness and healthcare sectors. In February 2021, the company announced its ambition to venture into these areas through its Vectura Fertin Pharma business, to enhance health experiences.

This information is based on a press release statement from the company.

In other recent news, Philip Morris International and British American Tobacco (NYSE:BTI) have been implicated in marketing strategies targeting youth, as per a report by the World Health Organization and industry watchdog STOP. Amid these allegations, Philip Morris International is preparing to launch its heated tobacco device, IQOS, in the United States in the second quarter of 2024.

The company aims to capture a 10% share of the total U.S. cigarette and heated tobacco volumes within approximately five years of launching the latest version of its device.

The U.S. Food and Drug Administration has authorized Philip Morris to market IQOS as a product that reduces exposure to harmful chemicals compared to cigarettes. Philip Morris International has reported strong growth in its smoke-free portfolio, including IQOS and ZYN, driving better-than-expected first-quarter results. The company's adjusted diluted earnings per share and organic net revenue saw double-digit increases, surpassing market expectations.

Despite facing currency headwinds, Philip Morris International has raised its full-year operating income growth forecast, reflecting confidence in sustained momentum throughout the year.

InvestingPro Insights

Philip Morris International Inc. (NYSE: PM) continues to reward its shareholders with a consistent dividend, highlighting its financial stability and commitment to returning value. The company's dedication to maintaining and increasing its dividend is underscored by a noteworthy track record: Philip Morris has raised its dividend for 16 consecutive years. This trend aligns with the company's latest announcement of a regular quarterly dividend of $1.30 per common share.

From a financial perspective, Philip Morris boasts a robust gross profit margin of 63.69% for the last twelve months as of Q1 2024, reflecting its ability to retain a significant portion of revenue after accounting for the cost of goods sold. This impressive margin is a testament to the company's efficient operations and strong pricing power within the industry.

Investors considering Philip Morris International's stock will find additional insights by exploring the 9 additional InvestingPro Tips available at Investing.com/pro/PM. These tips provide a deeper analysis of the company's financial health and market position. For those interested in a full array of investment tools, remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

Looking at the company's performance, Philip Morris has experienced a strong return over the last three months, with a price total return of 15.49%. Additionally, the stock is trading near its 52-week high, at 99.37% of the peak price, which could indicate investor confidence in the company's future prospects.

With a market capitalization of $162.05 billion and a forward price-to-earnings (P/E) ratio of 18.25, Philip Morris is positioned as a significant player in the tobacco industry. The company's next earnings date is set for July 23, 2024, which will provide further insights into its performance and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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