Philip Morris International (PM) just gave income investors another reason to pay attention. The tobacco company announced last week that it raised its quarterly dividend by 8.8%, from $1.47 to $1.60 per share. That brings the annual payout to $6.40 per share.
Shareholders on record by Oct. 2 will receive the payment on Oct. 26, 2026. The stock has also been doing well. PM stock is up 17% year-to-date (YTD), a little over twice the 8% gain in the Consumer Staples Select Sector SPDR Fund (XLP).
It also reached a 52-week high of $207.76 in late July. Nvidia and AMD Get the Headlines. The Real AI Winners Might Be Applied Materials and Lam Research.
Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. This dividend increase is not only about cigarette sales. Philip Morris International is building its smoke-free business, and the regulatory wins are adding support.
The FDA authorized 11 ZYN ULTRA nicotine pouch products in August. Weeks earlier, it gave 20 flagship ZYN products the first modified-risk orders issued for nicotine pouches, allowing Philip Morris International to market them as lower-risk alternatives to cigarettes. With the dividend nearly 9% higher and smoke-free products gaining ground, can Philip Morris International's stock keep moving higher?
Philip Morris International sells cigarettes, but its business is increasingly tied to smoke-free products such as IQOS heated-tobacco devices and ZYN nicotine pouches. The company operates mainly outside the U.S. cigarette market, where Altria Group (MO) is the bigger name. PM stock has gained 16% over the past 52 weeks and 17% so far in 2026.
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