2024-05-20 01:59:02 ET
Summary
- Philip Morris is a high-yielding stock with a reliable source of income and a growing qualified dividend.
- The current dividend sits at 5.1%. Although lower than peer yields, the Company has shown the best combination of price appreciation and dividend income.
- The current price of PM is up and may experience another run-up when interest rates come down, making it an ideal time to accumulate shares.
- The smokeless market is estimated to grow at a CAGR of 10.2% through 2023 and PM has the right product portfolio to benefit from this.
Overview
As an investor who values the income generated from my portfolio, high-yielding stocks like Philip Morris ( PM ) are a must-have within my portfolio. This is because of the attractive nature of the qualified dividend distribution and the cash flow heavy business. I initially covered PM at the beginning of the year in January, and since then, the price has surpassed my price target of $96 per share. However, we can see that Philip Morris experienced the least amount of total return when compared against peer stocks such as Altria Group ( MO ) and British American Tobacco ( BTI ). With this in mind, I would like to take the opportunity to revisit another valuation method to determine an updated fair price estimated as well as reinforce the value in a high income stock like PM....
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For further details see:
Philip Morris: Heavily Discounted With Potential Double-Digit Upside