Summary
Philip Morris is setting new multi-year lows, while the dividend is yielding higher than ever before.
The company put itself in a financial bind years ago, and the prolonged strength of the US dollar has made Philip Morris' financial recovery a long wait for investors.
The "worst of it" was back in 2015-2016, and the financials will continue to improve moving forward - even in the face of unfavorable FX exchange.
The stock is drastically oversold, and the company's improving financials signal a great buying opportunity for long term investors.
Shares of Philip Morris International (PM) continue to slide, now pacing new multi-year lows near $72 per share. This has caused the dividend yield to breach 6%, an unprecedented figure since the company was spun off from its parent Altria Group (MO) in 2008. While income investors usually gravitate towards high yields, the stock has lost more than 30% of its value in the past year. An uncharacteristically high dividend yield can signal that the market is fearing a potential cut to its dividend. Despite carrying north of $31 billion on its balance sheet, investors shouldn't fret about the dividend. We find the dividend to be well funded, and the stock to represent a compelling opportunity for long term investors.
source: Ycharts
