Analysis
Dividend Investors Have Had a Good Run on Philip Morris But Now Is the Time to Rebalance Their Position
When we wrote about Philip Morris (PM) in mid-September last year, we noted both its attractive 4% dividend yield at the time and its somewhat elevated stock price. As a consequence, we advised that dividend-focused investors wait for the stock to fall lower before buying it.
True enough, the stock fell to a low of $88.08 per share a couple of months later - from a price of around $99 per share when we wrote our note. Consequently, investors who took our advice and used a lower price point to take a position in the stock are now enjoying a total return of close to 35% after accounting for Philip Morris's price appreciation and cash dividends.
