 |
 |
 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 Featured MNV Articles:
| Philip Morris International Inc (PM) Shares Cross 4% Yield MarkBy Dividend Channel Staff, Friday, November 9, 3:18 PM ET
In trading on Friday, shares of Philip Morris International Inc (NYSE:PM) were yielding above the 4% mark based on its quarterly dividend (annualized to $3.40), with the stock changing hands as low as $84.53 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1998 — you would have paid $123.31 per share. Fast forward to 12/31/2011 and each share was worth $125.50 on that date, a mere $2.19 or 1.8% increase over all those years. But now consider that you collected a whopping $23.90 per share in dividends over the same period, increasing your return to 21.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.7%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. Philip Morris International Inc (NYSE:PM) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Philip Morris International Inc, looking at the history chart for PM below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
Special Offer: Find out what Frank Bifulco is holding in the Dividend OverDrive Portfolio with a free 30 day trial and a 20% off coupon from Forbes According to the ETF Finder at ETF Channel, PM makes up 10.92% of the Consumer Staples Select Sector SPDR Fund ETF (AMEX:XLP) which is trading up by about 0.3% on the day Friday. See what other ETFs contain PM »
Find the right mix of model portfolios today at PortfolioChannel.com
This Article's Word Cloud:
AMEX
Dividends
ETFs
Friday
International
Morris
NYSE
Philip
Portfolio
Yields
about
above
amounts
annual
back
company
comparison
consider
dividend
dividends
downs
each
escape
fillColor
gridColor
gridLocation
have
historically
important
leftLabelsEvery
mere
most
other
over
period
purchased
return
share
shares
slideshow
stock
that
total
trading
what
whether
with
would
years
yield
|
Now Playing:
The Importance of Dividends
Start slideshow: