Weekly Dividend Stock Ideas Researched by TheDividend Yield Weekly.Our weekly dividend idea is the globalcigarettesand tobacco stock Philip MorrisInternational(NYSE:PM);The Leading Tobacco Stock With 3.98% Yield And 7.7% Upside Potential.
Philip Morris International (PMI) is a leading international tobacco company,encompassing eight of the world’s top 15 international brands which includesMarlboro, the number one cigarette brand worldwide.PMI has become the world's leading internationaltobacco company and the third most profitable international consumer goodscompany. While US sales revenues have been in decline as Altria struggles tocope with higher state tobacco tariffs and the tobacco industry's negativeimage in the US, international sales continue to grow for PMI.
Philip Morris International’s subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. Its products are sold in approximately 180 countries. The Company divides its markets into four geographic segments: The European Union (EU) Region, The Eastern Europe, Middle East & Africa (EEMA) Region, The Asia Region and The Latin America & Canada Region. In June 2011, it completed the acquisition of a cigarette business in Jordan, consisting primarily of cigarette manufacturing assets and inventories. January 1, 2011, it established a business structure with Vietnam National Tobacco Corporation (Vinataba) in Vietnam, further developing its joint venture with Vinataba through the licensing of Marlboro and establishing a PMI-controlled branch for the building of its brands. More on Reuters here.
Philip Morris Internationalis a buy for all dividend growth investors. The company increased dividends over a period of 5 consecutive years with a double-digit rate. Dividends grew faster than the earnings per share due to the fact that the company stock up its payout ratio to a current value of 63%. After the spinn-off from Altria, the company was nearly debt-free and raised its loans to banks and other creditors to a current value of $22.4 billion. In relation to the strong operating cash-flow, measured by an EBITDA of $14.58 billion, the leverage seems to be ok for a consumer goods company with a high degree of addictiveness. The valuations are not cheap especially if you look the disappointing Q3/figures, the slowing growth an Europe and the reinforcing legal restrictions.
On September 12, 2012 PMI increased its dividend by 10.4% to 0.85 quarter dividend or $3.40 full year dividend. Analyst's from Morningstar estimated the fair value of the company at $92.0 which include a current upside potential of 7.70%.Philip Morris International is also a bet on China. Nearly half ofPhilip Morris International's sales were generated in Asia, the strongest growth region in the world.
Here is a snapshot ofPhilip Morris International:
Philip Morris International(NYSE:PM) has a market capitalization of $142.70 billion. The company employs 78,100 people, generates revenue of $76.346 billion and has a net income of $8.879 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.325 billion. The EBITDA margin is 18.76 percent (the operating margin is 17.46 percent and the net profit margin 11.63 percent).
Financial Analysis:The total debt represents 52.26 percent of the company’s assets and the total debt in relation to the equity amounts to 8,098.25 percent. Due to the financial situation, a return on equity of 457.40 percent was realized. Twelve trailing months earnings per share reached a value of $5.00. Last fiscal year, the company paid $2.82 in the form of dividends to shareholders.
Market Valuation:Here are the price ratios of the company: The P/E ratio is 17.07, the P/S ratio is 1.87 and the P/B ratio is finally 643.79. The dividend yield amounts to 3.98 percent and the beta ratio has a value of 0.86.
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| Long-Term Stock History Chart Of Philip Morris Int... (Click to enlarge) |
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| Long-Term Dividend Yield History of Philip Morris Int... (NYSE: PM) (Click to enlarge) |
These are the main big competitors at the stock market:
British American Tobacco(BTI) has a marketcapitalization of $98.53 billion. The companygenerates revenue of $24.473billion and has a netincome of $5.363billion. The firm’s EBITDA amounts to $8.324billion. The EBITDA marginis 34.02% (operating margin 30.48% and net profit margin 21.92%).
The total debt represents 37.89% of the company’s assetsand the total debt in relation to the equity amounts to 125.82%. Last fiscal year, areturn on equity of 35.63% was realized. Twelve trailing months earnings per share reached avalue of $5.10. Last fiscal year, thecompany paid $4.02 in form of dividends to shareholders.
Here are the price ratiosof the company: The P/E ratio is 19.95, Price/Sales 4.04 and Price/Book ratio 7.71. Dividend Yield: 4.15%. The beta ratio is 0.60.
Altria Group(MO) has a marketcapitalization of $63.75 billion. The companygenerates revenue of $23.800billion and has a netincome of $3.393billion. The firm’s EBITDA amounts to $6.321billion. The EBITDA marginis 26.56% (operating margin 25.50% and net profit margin 14.26%).
The total debt represents 37.04% of the company’s assetsand the total debt in relation to the equity amounts to 371.98%. Last fiscal year, areturn on equity of 76.13% was realized. Twelve trailing months earnings per share reached avalue of $1.92. Last fiscal year, thecompany paid $1.58 in form of dividends to shareholders.
Here are the price ratiosof the company: The P/E ratio is 16.40, Price/Sales 2.68 and Price/Book ratio 17.49. Dividend Yield: 5.59%. The beta ratio is 0.41.
Imperial Tobacco (ITYBY) has a marketcapitalization of $38.09 billion. The companygenerates revenue of $45.412billion and has a netincome of $1.110billion. The firm’s EBITDA amounts to $5.212 billion. The EBITDA marginis 11.48% (operating margin 5.31% and net profit margin 2.45%).
The total debt represents 34.69% of the company’s assetsand the total debt in relation to the equity amounts to 158.86%. Last fiscal year, areturn on equity of 9.91% was realized. Twelve trailing months earnings per share reached avalue of $2.15. Last fiscal year, thecompany paid $3.36 in form of dividends to shareholders.
Here are the price ratiosof the company: The P/E ratio is 35.80, Price/Sales 0.85 and Price/Book ratio 4.06. Dividend Yield: 4.03%. The beta ratio is 0.74.
Reynolds American(RAI) has a marketcapitalization of $23.13 billion. The companygenerates revenue of $8.541billion and has a netincome of $1.406billion. The firm’s EBITDA amounts to $2.537billion. The EBITDA marginis 29.70% (operating margin 28.09% and net profit margin 16.46%).
The total debt represents 22.54% of the company’s assetsand the total debt in relation to the equity amounts to 58.60%. Last fiscal year, areturn on equity of 22.04% was realized. Twelve trailing months earnings per share reached avalue of $2.64. Last fiscal year, thecompany paid $2.15 in form of dividends to shareholders.
Here are the price ratiosof the company: The P/E ratio is 15.67, Price/Sales 2.71 and Price/Book ratio 3.81. Dividend Yield: 5.70%. The beta ratio is 0.58.
Lorillard (LO) has a marketcapitalization of $14.57 billion. The companygenerates revenue of $6.466billion and has a netincome of $1.116billion. The firm’s EBITDA amounts to $1.929billion. The EBITDA marginis 29.83% (operating margin 29.26% and net profit margin 17.26%).
Twelve trailing months earnings per share reached avalue of $8.35. Last fiscal year, thecompany paid $5.20 in form of dividends to shareholders.
Here are the price ratiosof the company: The P/E ratio is 13.48, Price/Sales 2.25 and Price/Book ratio . Dividend Yield: 5.51%. The beta ratio is 0.43.
Vector Group (VGR) has a marketcapitalization of $1.41 billion. The companygenerates revenue of $1.133billion and has a netincome of $75.02 million. The firm’s EBITDA amounts to $152.71 million. The EBITDA marginis 13.47% (operating margin 12.54% and net profit margin 6.62%).
The total debt represents 58.66 % of the company’s assets. Twelve trailing months earnings per share reached avalue of $ 0.25 . Last fiscal year, thecompany paid $ 1.47 in form of dividends to shareholders. Here are the price ratiosof the company: The P/E ratio is 63.95 , Price/Sales 1.24 and Price/Book ratio . Dividend Yield: 9.44 %. The beta ratio is 0.43 . Here is the full free PDF-Report of Philip Morris, also for download available: ------
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* I am long in PM shares.I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I have positions in MO, LO, BTI, no positions in other stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.
The stock analysis, including the rating and up/down potential, is based onhistorical information and provided by several data provider like Thompson Reuters, Morningstar, GoogleFinance, YahooFinance and MSN. The analysis assumes the stock will perform in the future as it has in the past. This isgenerally never true. Material presented here is for informational purposes only. Before buying or selling asecurity, you should do your own research and reach your own conclusion.
