Philip Morris International Inc. (NYSE: PM) has announced a regular quarterly dividend of $1.35 per common share, payable on July 15, 2025, to shareholders of record as of June 27, 2025. This dividend declaration underscores PMI’s consistent commitment to shareholder returns, continuing its progressive dividend policy with a strong financial foundation.
For fiscal year 2024, PMI delivered total revenues of approximately \(37.9 billion and a net income of \)7.03 billion, reflecting the company’s solid profitability base. The dividend payout for common stock in 2024 totaled approximately \(8.2 billion, corresponding to a dividends per share of approximately \)5.27. Despite a slight year-over-year dividend per share decline nearly -0.62% as of Q2 2024, PMI continues to maintain a reliable cash return to shareholders.
A key highlight underpinning PMI’s financial strength is its transformative smoke-free business segment, which accounted for 42% of total net revenues in Q1 2025. This segment includes innovative products such as IQOS heat-not-burn devices, nicotine pouches, and e-vapor products. The company’s ongoing investment exceeding $14 billion since 2008 in smoke-free product development, coupled with significant scientific substantiation and regulatory approvals (including FDA’s modified risk tobacco product authorizations), elevates PMI as a global leader in this transformational category.
During prior earnings calls, PMI management expressed confidence in achieving compound annual growth rates (CAGR) from 2024 to 2026 of 6-8% in organic top-line growth and 8-10% in organic operating income growth, alongside an ambitious target to become substantially smoke-free in net revenues by 2030. The company’s proactive cost management and margin expansion initiatives, especially in the smoke-free and combustible categories, have led to raised guidance on earnings per share growth, with 2024 currency-neutral adjusted EPS growth now expected between 14% and 15%.
Financial metrics illustrate PMI’s robust operational efficiency and cash generation capacity with expected operating cash flow of around $11 billion in 2024 and a targeted reduction in net debt to adjusted EBITDA ratio by 0.3 to 0.4 times. This positions the company well to pursue strategic share repurchases and sustained dividend increases.
Philip Morris International’s strategic focus on diversified, innovative product offerings, strong regulatory support, and disciplined capital allocation illustrate a resilient business model in a traditionally defensive consumer staples sector. Investors can expect steady dividend income backed by high-quality earnings and forward-looking growth in evolving smoke-free product markets.
For more detailed information, refer to the original 8-K filing here: Philip Morris International 8-K June 2025 Dividend Declaration.
Tags: PM, Philip Morris International, Q2 2025, smoke free products, dividend policy, consumer staples sector