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Philip Morris International – The Best Dividend Growth Company

January 14th, 2013 by Isabela Mayer

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Philip Morris International (PMI) within the last years has executed diverse shareholder useful policies. The giant cigarette manufacturer has been involved in a significant share repurchase program and has been growing its dividend since its spin off from Altria in March 28, 2008. PMI has also raised its revenue at a stable tempo while also taking benefits of historically poor interest rates to decrease its interest expenditure. Nowadays Philip Morris is trading for $88.72 as of November 23, 2012. With its present quarterly dividend of about $0.85, the yield totals to $3.40 per year, or 3.5%

PMI has been increasing its dividend at a mean rate of approximately 15% since its spin off from in 2008. Its 2008 dividend constituted $1.84 in comparison to present day’s dividend of $3.40; this is similar to an 85% boost in the dividend in only 5 years.

The manufacturer has also been employed in a hostile repurchase program since 2008. The company has repurchased approximately $26 billion to date. This is approximately 25% of the whole shares outstanding since it was spun off.

Marlboro producer has been raising its revenue at a steady pace if you leave out the effect of foreign currencies. For the third quarter of 2012 the company announced $1.32 in earnings per share (EPS), lower 2.5% versus the $1.35 claimed in the third quarter 2011. Not including currency, reported EPS came in at about $1.39, up 3.0%. For timeframe before to 2012 EPS increase has averaged over 18% per year except currencies. Year to date (YTD) altered EPS ex currency is higher by 10.9 in comparison to previous year. The company has forecasted middle to long run currency neutral EPS advancement rate of between 10% to 12%. YTD net profits increased up 5.5% except currency compared to previous year. PMI has averaged a 65% dividend payout rate within the last eight quarters. Within the third quarter of the 2012 the payout ratio constituted 60% in comparison to the 55% payout ratio within the third quarter of 2011.

The leading cigarette producer has demonstrated an amazing job supporting its balance sheet since its spin off in 2008. The mean coupon yield for its long lasting debt has decreased 25% from 5.5% in 2008 to a predicted 4.5% in 2012. The regular time to maturity for its long run debt has boosted 3 years from 7.3 years in 2008 to about 10.5 years in 2012. For those who are looking for a profitable dividend growth PMI is the best variant.

More about PMI:

http://www.pmi.com/
http://investors.pmi.com/
http://en.wikipedia.org/wiki/Philip_Morris_International
http://finance.yahoo.com/q?s=PM
http://www.marketwatch.com/investing/stock/pm

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