Though primarily known for its focus on tech stocks, billionaire investor Philippe Laffont’s Coatue Management recently made a notable move by adding Philip Morris International Inc. (NYSE:PM) to its portfolio. The tobacco giant, traditionally seen as part of a defensive sector, now presents growth potential, thanks largely to its expanding lineup of smokeless products like Zyn and Iqos.
Philippe Laffont of Coatue Management
Philip Morris International Inc. is an American multinational tobacco company with its smoke-free products available in 95 markets, offering better alternatives for legal-age adults. Laffont, whose top holdings are largely tech-focused, took a 1.09% position in Philip Morris during the first quarter by purchasing over 1.5 million shares valued at around $247 million. While the investment marks a shift from his usual strategy, analysts suggest it aligns with a broader theme of growth-focused investing, as Philip Morris International Inc. increasingly pivots toward next-generation tobacco alternatives.
In addition to this, Philip Morris International Inc. has also offered steady dividends to shareholders over the years. The company currently offers a quarterly dividend of $1.35 per share and has a dividend yield of 3.17%, as of May 18. The company holds a 15-year streak of consistent dividend growth. With a 12-month return of over 71%, PM has outperformed the market by a wide margin.
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