Philip Morris Raises Dividend: A Look at Its Growth Strategy

Philip Morris International Inc. (PM) has raised the quarterly dividend by 8.9% to $1.47 per share, underscoring its continued focus on delivering shareholder returns. The next dividend payment is scheduled for Oct. 20 to its shareholders on record as of Oct. 3, 2025.With this adjustment, the annualized dividend rises to $5.88 per share. Philip Morris has been raising its annual dividend every year since 2008, reflecting a total hike of 219.6%, or a compound annual growth rate of 7.1%.What More Should Investors Know About PM?Philip Morris’ long-term growth strategy remains firmly anchored in its smoke-free transformation. In the second quarter of 2025, smoke-free products contributed 41% of total net revenues, growing 15.2% year over year organically on the strength of IQOS, ZYN and VEEV. This segment has become an increasingly important driver of earnings, positioning the company for sustainable growth and long-term value creation.Despite volume declines, PM’s traditional cigarette business remains resilient, supported by its premium brands and pricing power. Combustible net revenues grew 2.1% in the second quarter, driven by price increases, while gross profit advanced 5%. Marlboro also reached its highest quarterly market share since the 2008 spin-off, reinforcing PM’s brand strength and pricing leadership.The company has also made progress on cost and productivity initiatives. PM achieved more than $500 million in gross cost savings in the first half of the year through manufacturing and back-office optimization initiatives. The company aims to deliver $2 billion in gross cost efficiencies between 2024 and 2026, and by mid-2025. It has already realized more than $1.2 billion. The margin expansion achieved in the quarter reflects the impacts of these efficiencies.On the last earnings call, management lifted its full-year adjusted earnings per share guidance to $7.43-$7.56, up from the prior estimates of $7.36-$7.49. This outlook implies 13-15% growth, indicating management’s confidence in sustaining double-digit earnings growth, despite ongoing regulatory and currency headwinds.PM Stock Past Six Months PerformanceImage Source: Zacks Investment ResearchFinal Words on PMPhilip Morris’ latest dividend increase highlights its commitment to consistent shareholder returns while advancing the smoke-free transformation. With robust momentum in reduced-risk products, resilience in the premium cigarette portfolio and disciplined cost efficiencies, the company continues to strengthen its financial foundation. Management’s upgraded earnings outlook underscores confidence in sustaining growth despite regulatory and currency challenges, making PM’s combination of dividend reliability and strategic transformation an appealing proposition for long-term investors. PM presently has a Zacks Rank #3 (Hold).In the past six months, the stock has risen 7.6% compared with the industry’s 15.7% growth.Stocks to ConsiderCelsius Holdings, Inc. (CELH) develops, processes, manufactures, markets, sells and distributes functional energy drinks. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings indicates growth of 77.7% and 54.3%, respectively, from the prior-year levels. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average. The Chefs' Warehouse, Inc. (CHEF) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently flaunts a Zacks Rank of 1. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. Laird Superfood, Inc. (LSF) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank #2 (Buy) at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average. The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis Report Laird Superfood, Inc. (LSF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks