Philip Morris International Stock Hands $49 Bil Back – Worth a Look?
In the last five years, Philip Morris International (PM) stock has returned $49 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 37th highest amount to shareholders in history.
| PM | S&P Median | |
|---|---|---|
| Dividends | $48 Bil | $3.0 Bil |
| Share Repurchase | $984 Mil | $3.0 Bil |
| Total Returned | $49 Bil | $6.0 Bil |
| Total Returned as % of Current Market Cap | 19.7% | 18.8% |
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
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| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $604 Bil | 16.0% | $89 Bil | $515 Bil |
| GOOGL | $328 Bil | 9.2% | $17 Bil | $310 Bil |
| MSFT | $265 Bil | 9.5% | $121 Bil | $144 Bil |
| JPM | $197 Bil | 24.4% | $84 Bil | $113 Bil |
| XOM | $167 Bil | 24.5% | $94 Bil | $73 Bil |
| META | $165 Bil | 11.4% | $10 Bil | $155 Bil |
| BAC | $140 Bil | 38.6% | $53 Bil | $88 Bil |
| CVX | $123 Bil | 31.1% | $67 Bil | $57 Bil |
| WFC | $116 Bil | 46.4% | $27 Bil | $90 Bil |
| V | $99 Bil | 17.2% | $22 Bil | $77 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: 7.3% LTM and 8.6% last 3-year average.
- Cash Generation: Nearly 26.2% free cash flow margin and 36.7% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for PM was 7.3%.
- Valuation: Philip Morris International stock trades at a P/E multiple of 21.7
| PM | S&P Median | |
|---|---|---|
| Sector | Consumer Staples | – |
| Industry | Tobacco | – |
| PE Ratio | 21.7 | 24.0 |
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| LTM* Revenue Growth | 7.3% | 6.8% |
| 3Y Average Annual Revenue Growth | 8.6% | 5.5% |
| Min Annual Revenue Growth Last 3Y | 7.3% | 0.4% |
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| LTM* Operating Margin | 36.7% | 18.6% |
| 3Y Average Operating Margin | 35.6% | 18.1% |
| LTM* Free Cash Flow Margin | 26.2% | 14.2% |
*LTM: Last Twelve Months
The table gives a good overview of what you get from PM stock, but what about the risk?
PM Historical Risk
The stock isn’t immune to big drops. During the Global Financial Crisis, it fell about 41%, and it dipped even more in the 2018 correction with a 42% decline. The Covid pandemic pushed it down around 32%, while the inflation shock caused a smaller, but still notable, 23% drop. Good fundamentals don’t mean it won’t get hit hard when markets turn south. Even solid names feel the pain when sell-offs take hold.
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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