Philip Morris International (PM) Outperformed in 2025 as Smoke-Free Growth Accelerates

Philip Morris International Inc. (NYSE:PM) is one of the Best Dividend Stocks of 2025.

Philip Morris International (PM) Outperformed in 2025 as Smoke-Free Growth Accelerates

A man exhaling smoke from a cigarette indicating the use of tobacco products.

Philip Morris International Inc. (NYSE:PM) was always closely linked to cigarettes. However, in 2016, the company shifted its focus toward creating a smoke-free future, initiating a transformation within both its business and the broader tobacco industry.

Since then, efforts have been centered on developing, scientifically validating, and responsibly marketing smoke-free products that pose less harm than traditional cigarettes, with the ultimate goal of replacing cigarettes entirely. These smoke-free alternatives do not burn tobacco or produce smoke, resulting in significantly lower levels of harmful substances.

In the first quarter of 2025, Philip Morris International Inc. (NYSE:PM) reported strong performance from its smoke-free segment, which contributed 42% of total net revenues and 44% of gross profit. Shipment volumes rose by 14.4%, net revenues increased by 15% (20.4% on an organic basis), and gross profit grew by 27.7% (33.1% organically). The company’s smoke-free products are now available in 95 markets, with a multicategory portfolio launched in 46 of them.

In addition to this, Philip Morris International Inc. (NYSE:PM)’s dividend history is also commendable. The company has raised its payouts for 15 years straight. Currently, it pays a quarterly dividend of $1.35 per share and has a dividend yield of 2.99%, as of June 26.

While we acknowledge the potential of PM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure. None.