PMI's Dividend Yield Expected to Range from 2.1% to 5%

Jan.05.2023
PMI's Dividend Yield Expected to Range from 2.1% to 5%
PMI's 2022 dividend yield is between 2.1% to 5%. It has a market value of 157 billion dollars and owns the IQOS brand.

Phimo International's (PMI) annual dividend yield for 2022 ranges from 2.1% to 5%.


Philip Morris International (PMI) has a market value of $157 billion, which is almost equivalent to the combined total market value of its two competitors. In addition to its leading cigarette brand, Marlboro, the company also owns the top-notch heat-not-burn brand, IQOS.


Since its launch in 2014, IQOS has amassed a customer base of 19.5 million. The growth in sales of IQOS has offset the decline in sales of cigarettes, which is why PMI's overall sales grew by 3.4% in the first nine months of 2022.


Screenshot of Phimo International's revenue-related data. Source: New York Stock Exchange.


Analysts at the New York Stock Exchange predict that the company's earnings will grow at a rate of 2.8% per year over the next five years. The dividend payout ratio for PMI is expected to reach around 92% by 2022.


At first glance, this seems to be in a favorable position. However, due to the minimal capital required for tobacco companies to operate, this allocation rate should be sustainable in the short term. As PMI's dividend growth rate is lower than its earnings in the coming years, dividends are expected to be very safe.


The most significant factor is that investors can purchase the shares of this tobacco giant at a reasonable valuation and receive a 5% dividend yield. The stock's forward P/E ratio of 18.7 is higher than the tobacco industry's average forward P/E ratio of 13.4.


Special Note: This article does not provide any investment references or suggestions.


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