Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Stock Market»Philip Morris Stock Is A Shareholder Champion You Can’t Ignore
    Stock Market

    Philip Morris Stock Is A Shareholder Champion You Can’t Ignore

    October 7, 20255 Mins Read


    Iqos brand logo on a store

    04 September 2025, Baden-Württemberg, Stuttgart: The Iqos lettering and brand logo can be seen on the facade above the entrance to a branch of the company in the city center of Stuttgart (Baden-Württemberg) on 04.09.2025. Photo: Matthias Balk/dpa (Photo by Matthias Balk/picture alliance via Getty Images)

    dpa/picture alliance via Getty Images

    In the last decade, Philip Morris International (NYSE: PM) has returned a notable $74 billion back to its shareholders via dividends and buybacks. This shareholder-focused approach has delivered exceptional results in 2025, with the stock posting an impressive 30% year-to-date return, significantly outperforming the broader market despite recent volatility and establishing PM as one of the year’s standout consumer staples performers. Philip Morris’s unwavering commitment to income generation reached a new milestone in September 2025 when the company announced an 8.9% dividend increase, raising the quarterly dividend to $1.47 per share from $1.35, marking the 18th consecutive year of dividend increases since becoming a public company in 2008 and bringing the annualized dividend rate to $5.88 per share.

    The tobacco giant’s transformation strategy was further validated through robust financial performance in the first half of 2025, with revenue and earnings exceeding expectations, driven by accelerating growth in its smoke-free products portfolio, which now accounts for 42% of total net revenues.

    Philip Morris has strategically paused share repurchases in 2025 to focus capital allocation on strategic investments and dividend growth, while maintaining its disciplined approach to returning cash to shareholders through its industry-leading dividend yield of approximately 3.84%. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.

    That being said, if you seek an upside with less volatility than holding an individual stock like PM, consider the High Quality Portfolio. It has comfortably outperformed its benchmark—a combination of the S&P 500, Russell, and S&P MidCap indexes—and has achieved returns exceeding 91% since its inception. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

    Interestingly, PM has given back the 31st largest sum to shareholders in history.

    PM Stock Shareholder Returns

    Trefis

    Why should you care? Because dividends and share repurchases deliver direct, tangible returns of capital to shareholders. They also reflect management’s confidence in the company’s financial stability and ability to yield consistent cash flows. Moreover, there are more firms that exhibit similar traits. Here’s a list of the top 10 companies arranged by total capital returned to shareholders via dividends and stock buybacks.

    Top 10 Companies By Total Shareholder Return

    Top 10 Companies By Total Shareholder Return

    Trefis

    For the complete ranking, visit Buybacks & Dividends Ranking

    What do you notice here? The total capital returned to shareholders as a percentage of the current market cap seems inversely proportional to growth prospects for reinvestments. Companies like META and MSFT are growing significantly faster and in a more predictable manner than others, yet they have returned a smaller portion of their market cap to shareholders.

    That’s the flip side of high capital returns. While they are appealing, one must ponder the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s examine some figures for PM. (see Buy or Sell PM Stock for further details)

    PM Stock Fundamentals

    • Revenue Growth: 7.2% LTM and 7.1% last 3-year average.
    • Cash Generation: Almost 23.0% free cash flow margin and 36.4% operating margin LTM.
    • Recent Revenue Shocks: The lowest annual revenue growth over the past 3 years for PM was 4.3%.
    • Valuation: PM has a P/E multiple of 29.0
    • Opportunity vs S&P: Relative to S&P, PM provides higher valuation, greater revenue growth, and improved margins

    PM Stock Fundamentals

    Trefis

    PM Historical Risk

    It’s important to note that this stock isn’t immune to significant declines. It plunged about 41% during both the Global Financial Crisis and the 2018 correction. The COVID-19 crash was not as severe, but it still erased around 32%. Even the recent inflation shock caused it to decrease by over 22%. Therefore, despite solid fundamentals, such pullbacks are part of the market dynamics when there is a downturn.

    However, the risk extends beyond major market crashes. Stocks also drop during favorable market conditions — consider occurrences like earnings reports, business updates, and changes in outlook. Check out PM Dip Buyer Analyses to understand how the stock has bounced back from sharp declines in the past.

    Also, investing in a single stock without comprehensive analysis can be risky. Consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    9,900% returns in five years! Multibagger stock to be in focus on Monday; here’s why

    Stock Market

    Stock Market Today LIVE: Sensex jumps over 300 points, Nifty 50 above 25,550; PSU banks, metals rally; IT stocks drag

    Stock Market

    1:5 Stock Split + Dividend Stocks Today: IRCTC, SJVN, PFC, Senco Gold, Info Edge Trending; 25+ Stocks Ex-Date On Friday, February 20

    Stock Market

    These dividend stocks can insulate investors from AI risk, says Jenny Harrington

    Stock Market

    Utilities are growth stocks despite creaking infrastructure

    Stock Market

    3 Dividend Growth ETFs to Buy With $500 and Hold Forever

    Stock Market
    Leave A Reply Cancel Reply

    Top Picks
    Stock Market

    S&P Dow Nasdaq plunge as Trump’s tariff nears: US stock market today: Dow, S&P 500, Nasdaq all in red as Tesla nosedives and Trump’s looming tariff deadline stirs panic on Wall Street

    Commodities

    Why Big-Name Hedge Funds Are Big on Commodities Despite a Tough 2025

    Property

    What we know as Spain plans 100% tax on property bought by Britons

    Editors Picks

    FirstBank champions inclusive fintech innovation at Canada-Africa summit

    August 11, 2025

    Interdisciplinary agricultural education | UDaily

    November 12, 2025

    Mercosur Outlook launch: Charting a course for sustainable agricultural growth amid uncertainty

    October 16, 2024

    avec, Mail in France, Cheops Technology organise la « résistance » face aux États-Unis

    May 22, 2025
    What's Hot

    Does Metal Gear Solid need a new Kojima? Konami have “many people” in mind, but it’s “difficult”

    August 26, 2024

    JM Financial’s top metal picks for FY26: 3 factors fuelling the bullish call – Market News

    September 15, 2025

    Camden Property Trust : Jefferies & Co. adopte une opinion positive -Le 10 mars 2025 à 12:35

    March 10, 2025
    Our Picks

    Saudi businessman expresses interest in setting up agricultural farms during visit to Pakistan

    October 12, 2024

    Original lead singer of iconic metal band dies at 69

    July 30, 2025

    Willmar Utilities Commission extends offer for new general manager – West Central Tribune

    October 22, 2024
    Weekly Top

    Copper mining, Compass & Magnum Ice Cream

    February 19, 2026

    How corporate bonds can work for DIY investors

    February 19, 2026

    Stock Market Today LIVE: Sensex jumps over 300 points, Nifty 50 above 25,550; PSU banks, metals rally; IT stocks drag

    February 19, 2026
    Editor's Pick

    Terrestrial Energy Inc. Begins Trading on the Nasdaq Stock Market

    October 29, 2025

    Fresh wind in the sails drives gold, silver prices higher- The Week

    March 20, 2025

    La fintech tunisienne : un secteur en pleine évolution malgré un cadre complexe

    April 30, 2025
    © 2026 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.