Quick Read – Smoke-free products now drive 43% of Philip Morris’s net revenues, backing 17 consecutive dividend hikes, including an 8.9% raise in 2025. – PM’s trailing payout ratio sits at 78%, but 2026 free cash flow near $12 billion comfortably covers the $9 billion annual…
vidend. – Nine directors bought PM shares at $169.93 on May 6, and with no buybacks planned through 2026, the dividend claims first call on cash. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Philip Morris International didn’t make the cut. Grab the names FREE today
Philip Morris International (NYSE:PM) is a tobacco giant in the middle of a profitable pivot, with smoke-free products now accounting for over 43% of net revenues through IQOS heat-not-burn devices and ZYN nicotine pouches. With markets nervous about a potentially hawkish Federal Reserve under Kevin Warsh, retirees want to know if this 3% yielder can keep delivering. I dug into the payout math to find out.
Dividend Snapshot Payout Ratios Are Elevated but Covered by Smoke-Free Cash PM paid roughly $9.1 billion in dividends against $12.233 billion of operating cash flow in FY2025. On 2026 guidance for $13.5 billion in OCF and $1.4 to $1.6 billion of capex, free cash flow should land near $12 billion, comfortably above the payout. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Philip Morris International didn’t make the cut.