Monday, August 15, 2011

Philip Morris has growth potential

For all those who have no moral qualms, is the world's largest cigarette manufacturer, Philip Morris, a great investment. Cigarettes are probably the best division in the last 100 years: An extremely high brand loyalty, combined with an addictive product give the business almost monopolistic traits. That is the guarantee for high profits. The Pioneers sell their tobacco products in 180 countries worldwide and seven of the world's 15 biggest name brands of cigarettes her own (including Marlboro, L & M, Chesterfield). Equally important: The company is a shareholder-friendly companies in general.

In the past three years, the dividend rose by 39 percent. Simultaneously repurchased 330 million shares and retired. The number of shares outstanding fell by 16 percent so. Accordingly, the profit per share and thus increase the proportion of each shareholder in the company. Although cigarette consumption has been decreasing in Western countries, Philip Morris has more growth potential on a global level. With a dividend yield of just under four percent of the stock is attractively valued trend.

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