PM

[EricL]

Earnings are projected to grow to over $6 next year and they are targeting a 65% payout. I'll shoot for $0.95.

[TomK]

(09-10-2013, 03:00 PM)EricL Wrote: Earnings are projected to grow to over $6 next year and they are targeting a 65% payout. I'll shoot for $0.95.

That would be a fine raise, in my eyes. I hope you guys are right and that I'm low-balling it!

[Kerim]

They announced the raise: 94 cents!

Wow. Very solid raise!

[Shawnjeffrey]

Happy happy, joy joy.

[EricL]

(09-11-2013, 06:27 AM)Kerim Wrote: They announced the raise: 94 cents!

Wow. Very solid raise!

I was only off by a penny.

[TomK]

I'm delighted to have been so wrong about this one. 94 cents is a raise that inspires confidence. I think PM is a great stock to be buying these days. It is one of a few great companies that didn't really have a big run-up this year, providing a nice opportunity to load up at good valuations. But it will have its turn, and possibly soon if next quarter's earnings are good.

[Kerim]

I bought another 25 shares of PM this morning at a price of $86.24. I’ve been accumulating PM since late 2012, at prices ranging from $83.26 to $87.93. In absolute dollars per share terms, today’s purchase is nothing to get too excited about – actually it is in the high end of the range of all of my purchases.

But that is not how I see it, because I’ve been buying PM since the dividend was only 77 cents per quarter. And for a dividend growth investor, I think a great way to look at the evolving stock price is relative to the income you are buying at the time of purchase. That’s really what yield is, after all: How much are you paying up front for the dividend? Before today, my “best” purchase of PM was in November 2012. I paid $83.26 for each share when the quarterly dividend was 85 cents, for an annualized yield of 4.08 percent.

With yesterday’s raise to 94 cents per quarter, today’s purchase at $86.24 blows all my previous PM buys out of the water – my starting yield on this batch is 4.36 percent. Given the dividend raise, even with the pop in share price yesterday, PM’s income is significantly cheaper to buy today that it was two days ago.

If the price hovers around where it is now, or (gulp) drifts lower, it will be hard for me to resist buying still more, even though I already have what most would call a full position at the moment.

[TomK]

(09-12-2013, 04:43 PM)Kerim Wrote: Given the dividend raise, even with the pop in share price yesterday, PM’s income is significantly cheaper to buy today that it was two days ago.

Well said! And nice buy. The market seems pleased with PM today as well.

[fiveoh]

Pm is getting close to my buy price of $83! I hope this debt ceiling/gov shutdown keeps dragging it down.

[Kerim]

(10-09-2013, 10:46 AM)fiveoh Wrote: Pm is getting close to my buy price of $83! I hope this debt ceiling/gov shutdown keeps dragging it down.

You are more patient (disciplined?) than I am, fiveoh! I’m dying to pick some up at these prices. I just posted a new PM thread with a deeper look at why I like the stock. Maybe over in that thread you could explain why you’ve landed on $83 as your entry point and whether you think it will indeed get that low?

[turbo89]

Bump for PM. I'm looking to change my investment strategy to Dividend Paying stocks, and this looks pretty attractive at the current price level.

What's everyone think about PM at current time?

[ronn38]

I added it on the recent dip below $81. Strong dollar is a headwind, but I think its a buy and hold gem.
Its an ethical concern for some (was to me until recently).

Ronn