Philip Morris: The U.S. May Be The Next Growth Leg (Rating Downgrade)

Cain Lee 9.34K Followers Follow Summary Philip Morris International is downgraded to Hold as valuation reaches the high end of its historical range. PM's growth is driven by smoke-free products, now 42% of net revenue, with strong execution in international markets. U.S. expansion, especially with IQOS and ZYN, remains a key growth catalyst, but regulatory risks and competitive pressures persist. Dividend reliability is strong with 17 consecutive years of growth, but the current 3.1% yield is less compelling for income investors. felixmizioznikov/iStock Editorial via Getty Images Overview Philip Morris International ( PM ) has been a strong consumer staple over the last few years. When I previously covered PM, I issued a buy rating due to the attractive valuation and This article was written by Cain Lee 9.34K Followers Follow Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P. Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM, MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.