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What Should I Do With My Philip Morris Shares, Now That It Is Paying A 6.04% Dividend?

Published Fri, 08 Feb 2019 08:55:03 -0500 on Seeking Alpha

On February 7, 2019, Seeking Alpha's News Editor Clark Shultz reported the following: "Philip Morris +2% after guidance satisfies". Back on January 24, 2019, I wrote an article on Altria (MO) at the request of a subscriber to our Seeking Alpha Marketplace service, asking me to answer the following question:
What should I do with my MO shares, now that it is paying a 7.12% dividend?"
After doing so, many of my readers here on Seeking Alpha asked me if I could do a similar type of article on Philip Morris (PM)? I told them I would, but that I would first wait for the company to report its latest quarterly results. Philip Morris International has done so, therefore, here is the promised article.
Both companies, as you can see from the chart below have had a rough couple of years in terms of stock market performance, especially when compared to the S&P 500 Index (SPY):

These sharp drops in the share prices of both companies can be mainly attributed to slowing cigarette volumes as shown in the linked news article above:
Philip Morris International is up 1.67% after the company knocked out an earnings beat with its Q4 report, despite a 3.1% Y/Y drop in cigarette volume."
Many investors in Philip Morris are mainly invested in it for the strong dividend that the company pays out. Unfortunately, as you can see from the Seeking Alpha dividend table below that Philip Morris has a payout ratio of 86.23%.

For those who don't know what a payout ratio... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 54.71   14.9 3.68 3.20 5.86
LYONDELLBASELL INDUSTRIES 92.01   7.7 11.97 4.00 4.36

ALTRIA GROUP - MO
ALTRIA GROUP - MO  


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