We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Philip Morris Raises Dividend, Reinforces Growth Strategy
Read MoreHide Full Article
Key Takeaways
Philip Morris lifted its quarterly dividend 8.8% to $1.60 per share.
The annualized dividend now totals $6.40 per share following the hike.
PM has raised its dividend annually since 2008, marking a 248% total increase.
Philip Morris International Inc. (PM - Free Report) has raised the quarterly dividend by 8.8% to $1.60 per share, underscoring its continued focus on delivering shareholder returns. The next dividend payment is scheduled for Oct. 26 to its shareholders of record as of Oct. 2, 2026.
With this adjustment, the annualized dividend rises to $6.40 per share. Philip Morris has been raising its annual dividend every year since 2008, reflecting a total hike of 248%, or a compound annual growth rate of 7.2%.
What Is Supporting PM’s Growth Story?
Philip Morris’ growth strategy remains centered on expanding its smoke-free portfolio. In the second quarter of 2026, smoke-free products accounted for roughly 42% of total net revenues. International smoke-free revenues grew 11.8% organically, while gross profit advanced 14.6%, supported by IQOS, VEEV and ZYN. IQOS remained the primary growth engine, complemented by strong e-vapor momentum.
Meanwhile, Philip Morris’ combustible business continues to provide meaningful earnings support. International combustible revenues increased 6.4% organically in the second quarter, aided by strong pricing, while gross profit rose 8%. Cigarette volumes edged up 1.1%, and Marlboro matched its record category share of 11%, highlighting the resilience and pricing strength of the company’s established portfolio.
Cost discipline is another key element supporting Philip Morris’ profitability and investment capacity. The company generated more than $300 million in gross cost savings across cost of goods sold and SG&A during the first half, taking cumulative savings since 2024 above $1.8 billion. This keeps Philip Morris firmly on track toward its $2 billion gross savings target for the 2024-2026 period.
Looking ahead, Philip Morris continues to target 5-7% organic net revenue growth and 7-9% organic operating income growth for 2026. Adjusted EPS is projected at $8.26-$8.41, representing growth of 9.5-11.5%. Management also expects operating cash flow of around $13.5 billion, providing added financial flexibility to support business investments and shareholder returns.
PM Stock Past Three Months Performance
Image Source: Zacks Investment Research
Final Words on PM
Philip Morris’ latest dividend hike reinforces its focus on shareholder returns. The company also continues to scale its smoke-free business. Growth across IQOS, VEEV and ZYN, resilient combustible operations and ongoing cost efficiencies are supporting the company’s broader growth strategy. With management maintaining solid revenues, operating income and EPS growth expectations for 2026, Philip Morris appears well positioned to balance strategic investments with continued cash generation and shareholder distributions. Philip Morris presently has a Zacks Rank #3 (Hold).
In the past three months, the stock has risen 8.9% compared with the industry’s 6.8% growth.
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 63.9%, respectively, from the year-ago reported numbers.
Utz Brands (UTZ - Free Report) engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year sales indicates growth of 3.7% from the year-ago numbers.
View the Zacks #1 Rank List
Image: Bigstock
Philip Morris Raises Dividend, Reinforces Growth Strategy
Key Takeaways
Philip Morris International Inc. (PM - Free Report) has raised the quarterly dividend by 8.8% to $1.60 per share, underscoring its continued focus on delivering shareholder returns. The next dividend payment is scheduled for Oct. 26 to its shareholders of record as of Oct. 2, 2026.
With this adjustment, the annualized dividend rises to $6.40 per share. Philip Morris has been raising its annual dividend every year since 2008, reflecting a total hike of 248%, or a compound annual growth rate of 7.2%.
What Is Supporting PM’s Growth Story?
Philip Morris’ growth strategy remains centered on expanding its smoke-free portfolio. In the second quarter of 2026, smoke-free products accounted for roughly 42% of total net revenues. International smoke-free revenues grew 11.8% organically, while gross profit advanced 14.6%, supported by IQOS, VEEV and ZYN. IQOS remained the primary growth engine, complemented by strong e-vapor momentum.
Meanwhile, Philip Morris’ combustible business continues to provide meaningful earnings support. International combustible revenues increased 6.4% organically in the second quarter, aided by strong pricing, while gross profit rose 8%. Cigarette volumes edged up 1.1%, and Marlboro matched its record category share of 11%, highlighting the resilience and pricing strength of the company’s established portfolio.
Cost discipline is another key element supporting Philip Morris’ profitability and investment capacity. The company generated more than $300 million in gross cost savings across cost of goods sold and SG&A during the first half, taking cumulative savings since 2024 above $1.8 billion. This keeps Philip Morris firmly on track toward its $2 billion gross savings target for the 2024-2026 period.
Looking ahead, Philip Morris continues to target 5-7% organic net revenue growth and 7-9% organic operating income growth for 2026. Adjusted EPS is projected at $8.26-$8.41, representing growth of 9.5-11.5%. Management also expects operating cash flow of around $13.5 billion, providing added financial flexibility to support business investments and shareholder returns.
PM Stock Past Three Months Performance
Image Source: Zacks Investment Research
Final Words on PM
Philip Morris’ latest dividend hike reinforces its focus on shareholder returns. The company also continues to scale its smoke-free business. Growth across IQOS, VEEV and ZYN, resilient combustible operations and ongoing cost efficiencies are supporting the company’s broader growth strategy. With management maintaining solid revenues, operating income and EPS growth expectations for 2026, Philip Morris appears well positioned to balance strategic investments with continued cash generation and shareholder distributions. Philip Morris presently has a Zacks Rank #3 (Hold).
In the past three months, the stock has risen 8.9% compared with the industry’s 6.8% growth.
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 63.9%, respectively, from the year-ago reported numbers.
Utz Brands (UTZ - Free Report) engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year sales indicates growth of 3.7% from the year-ago numbers.