Thursday, September 13, 2012

Philip Morris Increases Dividend

This years boost will be 10.39% which is really good news for those of us who hold shares of the tobacco giant.  PM has raised its dividend annually since it was spun off from Altria 5 years ago, it's now an official dividend challenger.  Given more time I strongly believe PM will become a contender and has qualities which could take it all the way to dividend champion status many years from now.  It offers great products, great management, growth potential, and a fantastic dividend policy all in a cash cow industry.  Of course there are risks, but I'll be looking to add shares during temporary setbacks and other times when valuations appear attractive. 

Edit 9/15/2012:  Here is one of the risks I was talking about:

This picture was taken in Thailand by yours truly.  Plain packaging would be worse for Philip Morris because the distinctive Marlboro brand would be replaced with a boring font.


  1. Very nice increase. I'll take a 10% raise anytime!

    I'm a little concerned about the plain packaging laws taking place in Australia and how they'll affect the rest of the developed world. I guess we'll see. Asia is still the growth story, but this does take away from brand strength.

    Best wishes!

    1. Yeah I know what you mean, I've seen similar plans in action. In Thailand the cigarette packs feature grueseome pictures of the dangers of smoking. Didn't stop me or anyone else from smoking. I took some pictures I'll have to see if I can find them. The brands were still prominently featured.

      Plain packaging worries me a bit because brand recognition is paramount to Marlboro. I really hope the U.S. stops turning into a nanny state with all the stupid regulations on cigarettes, soda, etc. I read NYC has placed limits on size of sodas... just embarassing. Don't tread on me!

    2. CI,

      I see you added those pictures. That's becoming more common, which is a bit worrisome long-term.

      Don't tread on me is right!

      What's next? I work at a car dealership. Maybe we should show what car accident victims look like. Or, maybe at the beach they should start posting pictures of skin cancer and it's various effects. Maybe, Coke will have pictures of diabetes and enamel erosion. I mean, really?

      I agree that smoking isn't good for you. But, we're all grown ups here. I passed up my 5th birthday a long time ago. I'm not a child that needs someone holding my hand. I get frustrated over this stuff sometimes. All the problems in the world and we're trying to limit the size of soda. Sheesh!!

      Best wishes.

  2. You guys haven't seen anything yet. Just wait, now that the government is in the healthcare business. Big brother is pushing into all facets of our lives.

    1. I really hope you're wrong but I honestly wouldn't be surprised. Our fore fathers are probably rolling in their graves with all the government intervention these days.

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