How Philip Morris International (PM) Fits into a Short-Term Dividend Capture Strategy

Philip Morris International Inc. (NYSE:PM) is included among the Best High Yield Stocks to Buy in October.

Philip Morris International Inc. (NYSE:PM) is an American tobacco company, with its products sold in over 180 countries. The company maintains an 80% payout ratio, which appears manageable in light of its ongoing business transformation. Smoke-free products— led by IQOS heated tobacco and ZYN nicotine pouches— accounted for 39% of 2024 revenue, with many markets already seeing smoke-free products as the majority. The acquisition of Swedish Match gave Philip Morris a strong foothold in the fastest-growing nicotine segment, while the recent dismissal of a lawsuit over ZYN pricing eliminated a significant concern.

IQOS, Philip Morris International Inc. (NYSE:PM)’s heat-not-burn product, brought in over $3 billion in net revenue and commands a 76% share of the global heat-not-burn market. In Europe, adjusted IQOS sales volumes picked up, climbing 9.1% once regulatory challenges eased, while in Japan, adjusted volumes grew 7.8%, pushing its market share to 31.7%.

On September 19, Philip Morris International Inc. (NYSE:PM) declared an 8.9% hike in its quarterly dividend to $1.47 per share. Through this increase, the company stretched its dividend growth streak to 16 years, which makes it one of the best stocks for a dividend capture strategy. The stock has a dividend yield of 3.57%, as of September 27, and it will go ex-dividend on October 3.

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Disclosure: None.