Philip Morris International (PM)

Philip Morris International (PM-N) has recently raised its dividend by 9%, which is a positive indicator for investors focused on yield. However, the company faces several challenges, including increasing societal and governmental resistance, particularly regarding its undertakings in the cannabis sector, which have yet to significantly impact the bottom line. As a result, there is a risk that sales and revenues may decline. Investors must be mindful of the company's financial health, particularly the free cash flow (FCF) and the payout ratio, as these factors will determine the sustainability of the dividend. Therefore, those considering this stock should understand the motivations behind their investment, since it appears many hold it primarily for the income rather than growth potential, with concerns surrounding future revenue shrinkage and dividend stability.