Logical Progress Advancing a Little Bit Every Day

6Jun/130

Added Philip Morris International to Dividend Portfolio

Just a quick update, I took an opportunity on a small pullback today to add Philip Morris International (PM) to the dividend portfolio. If you don't know, PM was a spinoff of Altria (MO) a few years ago, they've spun off their international arm. It's not officially part of the S&P Dividend Aristocrats, and neither is Altria, but I consider it to be a strong enough candidate to hang with the other aristocrats in my portfolio. 

A lot of analysts believe this company has a lot more growth potential than Altria due to the decline of smoking in the USA. I agree with them, and while there are some obstacles (like the bland packaging on cigarettes in Australia and general public health initiatives in developing countries), I still feel that the growth opportunities are huge.

Having lived in the UK for over two years now I can say with confidence that the most popular brand of cigarette here is Marlboro, and smoking still remains quite popular with minimal public outcry. Sure the packages have pictures of lung tumors, but that doesn't seem to be much of a deterrent. Smoking in the US is on a major decline, but in the UK and other parts of Europe it still seems to be en vogue. This is why I feel PM will do well.

They are paying a 3.7% dividend, and they haven't announced their latest one yet but I'm anticipating an announcement next week with an ex-div around June 25. Stay tuned

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