Philip Morris International raises quarterly dividend by 8.9%

Published 19/09/2025, 12:10
© Reuters

STAMFORD, CT - Philip Morris International Inc. (NYSE:PM), a $251.79 billion tobacco giant with an impressive 66.44% gross profit margin, announced Friday that its Board of Directors has approved an 8.9% increase to the company’s regular quarterly dividend, raising it to $1.47 per share from the previous $1.35 per share.

The new dividend will be payable on October 20, 2025, to shareholders of record as of October 3, 2025, which is also the ex-dividend date. The increase brings PMI’s annualized dividend rate to $5.88 per share, offering investors a current yield of 3.34%. According to InvestingPro, the company has maintained dividend payments for 18 consecutive years.

This marks the company’s consecutive annual dividend increase since becoming a public company in 2008, representing a total increase of 219.6% over that period, or a compound annual growth rate of 7.1%.

PMI, a leading international consumer goods company, reported that its smoke-free products were available for sale in 97 markets as of June 30, 2025, and were used by over 41 million legal-age consumers worldwide. The smoke-free business accounted for 41% of the company’s total net revenues in the first half of 2025.

The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn devices, nicotine pouches, and e-vapor products.

The dividend announcement was made in a company press release.

In other recent news, Philip Morris International Inc. reported its second-quarter earnings for 2025, with an adjusted diluted earnings per share (EPS) of $1.91, exceeding the forecasted $1.86. However, the company’s revenue of $10.14 billion did not meet expectations, falling short of the anticipated $10.31 billion. This revenue shortfall resulted in a 1.65% revenue surprise. Additionally, UBS has adjusted its price target for Philip Morris to $166 from $177, maintaining a Neutral rating. This revision is due to reduced forecasts for the company’s ZYN nicotine pouches. UBS has lowered its fiscal year 2025/2026 estimates for US ZYN cans to 801/922 million from 826/1,033 million previously. Revenue projections for ZYN have also been cut to $2.52/2.76 billion from $2.66/3.48 billion. These developments reflect ongoing adjustments in the company’s performance and market expectations.

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