PM Stock Recent News

PM is gaining ground with smoke-free products and cost cuts, but regulatory and currency risks call for caution.

With recent market highs and no shortage of thrills, some investors might be ready to turn the excitement down a notch or two. Tobacco companies often pay high dividend yields backed by decades of proven reliability supported by durable revenues. Six tobacco companies were evaluated using a relative quality matrix with factors including yield, payout ratio, value, profitability, growth, and leverage.

Philip Morris' smoke-free shift gained momentum in the first quarter of 2025 as high-margin products drove profit growth and strengthened its portfolio mix.

STAMFORD, Conn.--(BUSINESS WIRE)--Today, Philip Morris International's U.S. businesses (“PMI U.S.”) unveiled “Invested in America,” a bold advertising campaign that brings to life the company's deep-rooted commitment and increased contributions to America and Americans. The campaign's message is grounded in the role PMI U.S. is playing in powering job growth, revitalizing manufacturing, improving public health by offering adults 21+ who smoke better choices, and strengthening communities across.

Dividend stocks are a favorite among investors for good reason.

My July 2025 watchlist focuses on high-yield, attractively valued stocks, aiming for a 12% long-term CAGR and outperforming benchmarks. Since its inception, my watchlist has a CAGR of 15.11%, performing in-line with SPY and VYM, while providing a superior dividend yield. The June 2025 watchlist includes 10 stocks with an average forward dividend yield of 3.54% and an expected return of 13.62%.

We initiate Philip Morris International Inc. at Hold with a $170 target, citing strong smoke-free momentum but stretched valuation versus peers. Operational execution—especially ZYN and IQOS scaling—drives above-consensus EPS forecasts, with cost savings and mix shift fueling margin expansion. Supply chain constraints and regulatory risks could cap upside, making capacity execution and policy developments key swing factors for the stock.

Philip Morris has outperformed the market and tech giants over 5 years, driven by strong growth in smoke-free products like ZYN and IQOS. Despite impressive financial results and a successful smoke-free transition, I am downgrading my rating to neutral, due to limited upside and a lower dividend yield. PM now trades at a premium valuation with a sub-3% yield, making alternatives like MO, VZ, and growth stocks more attractive for new capital allocation.

Philip Morris International's transformation to smoke-free products like ZYN and IQOS drives strong growth, higher margins, and outperformance, versus traditional tobacco peers. Despite a lower dividend yield than competitors, PM's capital appreciation and consistent dividend growth make it a superior long-term investment. Valuation is elevated at a 25.8x P/E, but justified by double-digit EPS growth, industry-leading profitability, and a future-proof product portfolio.

While technology stocks get all the press, there are also some great growth stocks in the consumer products space. Let's look at five of my favorites in the sector to buy right now.