A Decade of Rewards: $75 Bil From Philip Morris International Stock
In the last decade, Philip Morris International (PM) stock has returned a notable $75 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, PM stock has returned the 31st highest amount to shareholders in history.
| PM | S&P Median | |
|---|---|---|
| Dividends | $74 Bil | $4.5 Bil |
| Share Repurchase | $984 Mil | $5.6 Bil |
| Total Returned | $75 Bil | $9.4 Bil |
| Total Returned as % of Current Market Cap | 27.3% | 24.6% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
- Ten-Year Tally: Philip Morris International Stock Delivers $75 Bil Gain
- Buy or Sell Philip Morris Stock Ahead of Its Upcoming Earnings?
- PM Has Returned $74 Bil To Shareholders In A Decade
- PM Has Paid Out $74 Bil to Investors in the Past Decade
- PM Stock Up 5.6% after 5-Day Win Streak
- PM Stock Down -13% after 5-Day Loss Streak
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $847 Bil | 22.3% | $141 Bil | $706 Bil |
| MSFT | $368 Bil | 10.5% | $169 Bil | $200 Bil |
| GOOGL | $357 Bil | 8.9% | $15 Bil | $342 Bil |
| XOM | $218 Bil | 37.7% | $146 Bil | $72 Bil |
| WFC | $212 Bil | 75.5% | $58 Bil | $153 Bil |
| META | $183 Bil | 10.8% | $9.1 Bil | $174 Bil |
| JPM | $181 Bil | 21.8% | $0.0 | $181 Bil |
| JNJ | $159 Bil | 29.8% | $105 Bil | $54 Bil |
| ORCL | $158 Bil | 30.2% | $35 Bil | $123 Bil |
| CVX | $157 Bil | 48.2% | $99 Bil | $58 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for PM. (see Buy or Sell Philip Morris International Stock for more details)
Philip Morris International Fundamentals
- Revenue Growth: 7.5% LTM and 8.0% last 3-year average.
- Cash Generation: Nearly 25.3% free cash flow margin and 37.1% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for PM was 7.5%.
- Valuation: Philip Morris International stock trades at a P/E multiple of 31.7
| PM | S&P Median | |
|---|---|---|
| Sector | Consumer Staples | – |
| Industry | Tobacco | – |
| PE Ratio | 31.7 | 24.5 |
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| LTM* Revenue Growth | 7.5% | 6.4% |
| 3Y Average Annual Revenue Growth | 8.0% | 5.6% |
| Min Annual Revenue Growth Last 3Y | 7.5% | 0.2% |
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| LTM* Operating Margin | 37.1% | 18.8% |
| 3Y Average Operating Margin | 35.9% | 18.4% |
| LTM* Free Cash Flow Margin | 25.3% | 13.5% |
*LTM: Last Twelve Months
The table gives good overview of what you get from PM stock, but what about the risk?
PM Historical Risk
PM isn’t immune to big drops. It fell about 41% in both the Global Financial Crisis and the 2018 Correction. During the Covid sell-off, it still dipped nearly 32%, and even the recent Inflation Shock took it down around 23%. Good fundamentals matter, but history shows PM can still get hit hard when markets turn sour.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read PM Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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