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Philip Morris International

Philip Morris NYSE:PMYield: 3.6%

Philip Morris International (NYSE:PM) owns part of the market that serves the globe’s 1.1 billion smokers. Even better, those smokestacks are supposed to grow to 1.6 billion by 2025. More than half of Asia smokes.

Lawsuits? Meh. File as many as you want. No matter how many people die from smoking, no matter how many warning labels are put on packages, no matter how large the tax burden will be shifted to cigarettes, people will always smoke.

Philip Morris is in solid financial shape; trailing 12-month free cash flow is almost $8.3 billion, and the company has a five-year projected earnings growth of 11.3%. PM trades at 15.6 times this year’s earnings and yields 3.6% in dividends.

As of this writing, Lawrence Meyers was long KO and PM. He is president of PDL Capital, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at and follow his tweets @ichabodscranium.

Article printed from InvestorPlace Media,

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