Philip Morris Stock Trading at Record Highs; Still Pays 4.9% Dividend
A perfect storm has made it possibly the perfect time for
investors to embrace sin stocks. Interest rates are still near record lows and
stocks are near record highs. That’s great for initial investments, but it
means dividend yields are dropping hard.
Where are income-starved investors supposed to go to get
safe, high yields?
The yields on traditional blue-chip stocks are reliable and
tend to grow every year, but the payouts aren’t astronomical. That’s the
risk/reward tradeoff. The average dividend yield of all Dow Jones Industrial
Average stocks is 2.2%. The current yield on the S&P 500 is a paltry 1.4%,
its lowest level since the new millennium and its second-lowest reading on
record.
If you’re looking for a stock that provides investors with
strong, long-term capital appreciation and a long history of raising its frothy
dividends, then look no further than tobacco giant Philip Morris International
Inc. (NYSE:PM).
Philip Morris operates 38 production facilities and produces
more than 700 billion cigarettes each year. The company’s machines can produce
up to 20,000 cigarettes every minute. (Source: “Making Cigarettes,” Philip
Morris International Inc., last accessed May 19, 2021.)
Philip Morris International’s products are sold in more than
180 markets. In many of these markets, the company holds the No. 1 or No. 2
position by market size. Philip Morris has six of the top 15 international
brands. (Source: “Building Leading Brands,” Philip Morris International Inc.,
last accessed May 19, 2021.)
Even if you’re not all that familiar with the name Philip
Morris, I’m pretty sure you’ve heard of some of the company’s brands.
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