Scarcnet News Summaries (Advocacy Institute)
Analysts Predict Philip Morris Will Raise Dividend
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Abstract
Tobacco analysts are predicting that Philip Morris will raise its dividend by as much as nine percent when its board meets in New York today. The increase will put the company's dividend yield at five percent, compared with the 1.2 percent average yield among companies in the Standard & Poor's 500 stock index. According to Salomon Smith Barney Inc. analyst Martin Feldman, "There are investors who own the stock for the yield, and with substantial cash on its balance sheet and strong cash flows, raising the dividend by nine percent is no stretch for the company." Philip Morris stock has fallen about 30 percent this year, the worst performance of any Dow Jones Industrial stock.
Source: "Philip Morris Expected To Raise Dividend Tomorrow," BLOOMBERG NEWS, August 24, 1999.