The Fool's Austin Smith loves the powerful returns that come from slow-compounding, dividend-paying companies that investors often consider boring. In this video, Austin discusses how the best stock over the past 50 years, Altria (NYSE: MO), serves as a model for what to expect from its spinoff, Philip Morris International (NYSE: PM). Through a focus on emerging markets, Philip Morris is poised to benefit from volume growth that will drive earnings and dividend growth in the future.  

Austin highlights the simplicity of Philip Morris' business model and the power of its Marlboro brand as reasons to consider the stock. These are the same business model and brand that made Altria a success, but without the exposure to Altria's declining domestic business. Austin also differentiates Philip Morris from other industry peers such as Vector Group (NYSE: VGR) and Lorillard (NYSE: LO). 

The nature of the tobacco business has risks relating to health concerns and government restrictions, but Altria's historical performance shows that there is plenty of room for market outperformance in higher-growth emerging markets in the future.


Tobacco companies have been under siege in the U.S. for decades, as waves of litigation, regulation, and anti-smoking campaigns have given the industry a black eye. As Austin discusses in this video, Philip Morris focuses on overseas markets, where business prospects generally look brighter. Investors have been happy with its stock's performance, but is Philip Morris still a buy? Find out in The Motley Fool's premium research report on the company, which includes in-depth analysis of its opportunities and challenges ahead. To claim your report, along with a year's worth of analyst updates as key news develops, just click here now.

The article Why I Loaded Up on This Dividend Giant originally appeared on Fool.com.

Austin Smith owns shares of Philip Morris International. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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