We just covered the The 14 Best Low-Risk, High-Growth Stocks to Buy Right Now and Philip Morris International Inc. (NYSE:PM) ranks 11th on this list.
Philip Morris International Inc. (NYSE:PM) is moving away from reliance on traditional cigarettes to high-margin, smoke-free technology. The acquisition of Swedish Match has made the US market the company’s largest growth driver. In early 2026, ZYN nicotine pouches reached a structural milestone: shipping nearly 800 million cans annually. With over 70% retail market share in the US, ZYN provides a high-margin revenue stream that is currently growing at double-digit rates. Smoke-free products like ZYN and IQOS generate significantly higher gross margins than traditional cigarettes. With these products now accounting for more than 41% of total net revenue, they are structurally expanding the company’s overall earnings profile.
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For risk-averse investors, Philip Morris International Inc.’s (NYSE:PM) core business acts as a financial strength. Even during economic crises, nicotine consumption remains stable. PM’s huge global presence, selling in more than 180 markets, provides geographic diversification that protects against localized recessions or currency crises. The stock is also a favorite among income-focused investors due to its extreme reliability. At the end of 2025, PM announced an 8.9% dividend increase, the largest in more than a decade. In April, the annual dividend stands at $5.88 per share, yielding approximately 3.7% to 3.8%. Management has targeted $45 billion in aggregate operating cash flow through 2028. To an outsider, this visibility means the company has a clear plan to pay its dividend and buy back shares in the coming years.
While we recognize PM’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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