Investors have been searching for high dividend yields and “safety” stocks during this volatile market environment. One stock we have some exposure to is Philip Morris International ($PM), the producer of tobacco products outside the US.
Not only is tobacco one of the sectors that tends to do well regardless of the economic environment, PM also pays a 4.6% dividend.
The company reported earnings today and the stock is shooting up over 3% on the news. Net income rose by 31% to $2.38 billion as it sold more cigarettes at a higher price.
Asia was the growth story for PM where shipments were up 13%. This helped offset lower shipments to the EU, Latin America, and Canada. The volatile and undeveloped areas of Eastern Europe, Africa, and the Middle East saw shipments increase. The bottomline is that PM is able to cut costs so even if shipments fall in certain regions the net income grows.
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