Philip Morris International: Three Years Of Dividends

If I had to name a stock that shares the most characteristics in common with the Johnson & Johnson of the late 2000s, I would point to Philip Morris International (PM) right now. It has become disfavored the past four years because it has struggled to grow revenues and this struggle has been exaggerated by the strength of the U.S. dollar (remember, Philip Morris International generates 100% of its profits outside the United States so that a strong U.S. dollar will artificially lower earnings while a weak U.S. dollar will artificially raise earnings. And by artificially, I mean that the earnings shifts due to currency fluctuations are illusory unless it is part of a fundamental shift in the equilibrium of exchange rates between the dollar and everything else.)

This struggle to grow earnings has put pressure on the amount of dividend growth that Philip Morris International shareholders have been able … Read the rest of this article!