Forget Altria: This Stock Is a Much Better Buy Right Now
When it comes to Altria (NYSE: MO), the big attraction for most investors is going to be its huge 8.9% dividend yield. But yields usually don't get that high without a good reason, which is why most long-term dividend investors should probably consider Philip Morris International (NYSE: PM) instead, despite a lower yield. Here's what you need to know to make the call.
In early 2008 Altria spun off Philip Morris International. In effect, Altria retained the rights to sell Philip Morris brands in the United States while Philip Morris International sold those same brands outside the United States. In this way, the two companies share the same iconic cigarette brand portfolio, which includes industry giant Marlboro.
According to Altria: "Altria's Board of Directors and management believed that the spin-off would enable each of Altria's international and domestic tobacco businesses to focus exclusively on realizing its own opportunities and addressing its own challenges, thereby building long-term shareholder value."
Source Fool.com
