Philip Morris's IQOS Technology Is Smoking Hot – Seeking Alpha

Philip Morris (PM) is a shareholder-friendly company that provides investors security and a steady stream of dividends. The Balance sheet appears extended, but the Company is at the forefront of a revolutionary tobacco consumption product that will offer an alternative to cigarettes, and vaping. This new technology, called IQOS (which stands for “I quit ordinary smoking”), will allow the company to leverage their widely popular Marlboro brand while providing a safer experience for tobacco consumers. This article will explain how IQOS technology can help Philip Morris increase future dividend income.

Fundamentals

Philip Morris currently has a historically high forward P/E of 23.84 and a more palpable trailing P/E of 20.18 that is still worrisome for a mature company that creates a product which many governments are increasingly trying to regulate.

There is nothing impressive about this company financial statistics when compared to their peers, or the broader S&P 500 stock index. The dividend rate looks appealing at 4%, but if you research further the Payout Ratio of 91.96% tells investors that this company is stretching their balance sheet to pay

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