On Friday, September 18, the Board of Directors of Philip Morris International Inc. (PM) announced an increase in its quarterly dividend from $1.47 to $1.60 per share. The new dividend is payable on October 26, 2026, to shareholders of record as of October 2, 2026.
The 8.84% increase is significantly higher than Philip Morris International’s recent dividend growth rates and represents a very pleasant surprise for shareholders.
PM has increased its annual dividend every year since becoming a public company in 2008. During that period, the annual dividend has increased by 248%, representing a compound annual growth rate of 7.2%.
Current Dividend Yield and Income Impact
At the time of writing, Philip Morris International shares trade at $187.48, based on yesterday’s closing price. Following the increase, the forward annual dividend is $6.40 per share, giving PM a dividend yield of approximately 3.14%.
As an owner of 85 shares of PM, this dividend increase adds $32.93 to my projected annual net dividend income.
I was expecting a 4% increase, so the 8.84% raise was more than double my expectation. Needless to say, I’m very happy to take it.
Long-Term Dividend Growth Track Record
Philip Morris International is a Dividend Contender with an 18-year streak of dividend increases.
According to Dividend Champions data, PM’s dividend growth rates over the 1-, 3-, 5-, and 10-year periods are approximately 5.1%, 3.2%, 3.2%, and 3.2%, respectively.
- 1-year: 5.1%
- 3-year: 3.2%
- 5-year: 3.2%
- 10-year: 3.2%
The latest increase therefore stands out compared with the company’s recent dividend growth history. After several years of relatively modest increases, an 8.84% raise represents a meaningful acceleration in dividend growth.
This is the 13th dividend increase I have received from Philip Morris International since initiating my position in January 2014. During that time, the quarterly dividend has grown from $0.94 to $1.60 per share, representing a 70.2% increase.
At the time of writing, PM represents approximately 1.52% of my portfolio, while its share of future annual dividend income is about 1.40%.
Following this increase, my yield on cost has risen to 7.64%.
Commentary
This was a very pleasant dividend surprise.
I was expecting Philip Morris International to raise its dividend by around 4%, which would have been consistent with its recent growth rate. Instead, the company delivered an 8.84% increase.
That is more than double what I expected and adds another $32.93 to my projected annual net dividend income. For an income-focused portfolio, that is a meaningful increase from a single dividend announcement.
The company’s long-term dividend history is also encouraging. Since becoming an independent public company in 2008, Philip Morris International has increased its annual dividend every year, and the latest increase shows that dividend growth can accelerate after a period of more modest increases.
Quick Valuation Take
At $187.48 per share, PM offers a forward dividend yield of approximately 3.14% following the latest increase.
The higher dividend growth rate makes the current yield more interesting from an income-growth perspective, although the share price and valuation should still be considered alongside the company’s expected earnings and cash-flow growth.
For my portfolio, the combination of a 3%+ dividend yield and an 8.84% increase makes this a notable improvement in the income profile of my PM position.
Dividend Safety and Outlook
Philip Morris International has an 18-year streak of annual dividend increases since becoming a public company in 2008. The company has also increased its annual dividend by 248% over that period.
The latest 8.84% increase is particularly notable because it is well above PM’s recent 1-, 3-, 5-, and 10-year dividend growth rates. While one increase does not necessarily establish a new long-term growth trend, it is a positive development for shareholders focused on dividend growth.
Going forward, I will be watching whether this stronger rate of dividend growth can be sustained. If future increases remain closer to the latest raise than the recent 3%–5% range, PM could provide considerably stronger dividend-income growth than its recent history would suggest.
Final Thoughts
Philip Morris International delivered one of the more pleasant dividend surprises in my portfolio with an 8.84% increase.
I was expecting a 4% raise, so seeing the dividend jump from $1.47 to $1.60 per share was an excellent result from my perspective. The increase adds $32.93 to my projected annual net dividend income and raises my yield on cost to 7.64%.
With an 18-year dividend-growth streak and a long-term history of increasing its dividend every year since becoming a public company, PM remains an important income-producing position in my portfolio.
Summary of 2026 Dividend Increases / Cuts
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Full Disclosure: Long PM
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