Philip Morris International, the global tobacco giant, said its board of directors voted to increase the company’s regular quarterly dividend by 10.4 percent to an annualized rate of $3.40 per share.
The new quarterly dividend of $0.85 per share, up from $0.77 per share, is payable on Oct. 11 to shareholders of record as of Sept. 27. The ex-dividend date is Sept. 25, the company said in a statement.
In July, Philip Morris reported that net earnings dropped 3.8 percent on year to $2.32 billion, though the company reported solid cash flows and dividend yields, an attractive combination to investors these days, especially amid times of low interest rates.
Revenue during the second quarter dipped 1.8 percent to $8.1 billion, though company executives remain optimistic.
“Despite the anticipated Japan hurdle and currency headwinds, we had a solid second quarter, which underscored our sustained business momentum,” Chairman and CEO Louis Camilleri said in the second-quarter earnings statement.
“Excluding the Japan hurdle, our year-to-date organic cigarette volume grew by an exceptional 3.3 percent. On the same basis, our currency neutral, reported and adjusted diluted earnings per share were up by a very robust 17.2 percent and 18.2 percent, respectively,” Camilleri added.
“Our broad geographic footprint, world-class brand portfolio and a strong pricing environment remain the cornerstone of our continuing ability to capitalize on growth opportunities around the world, whilst enabling us to weather uncertainty in those markets where economic conditions are still currently weak.”
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