PM to me is a steal at todays closing of $86+...its down 10% off its highs a few months back....has anything changed? nothing except "the flight to treasuries" where supposedly according to the media people are dumping dividend stocks and going to the safety of 2.3% US treasuries....not me, Im holding my dividend stocks.Really do you wanna collect 2.3% annually in US treasuries or buy dividend growth stocks who have 4% annual payouts that will probably be 10% by the end of the decade?

The PM dividend is 3.9% today and should be 4.3% after september increase. So I ask you do you want a bank account yielding .015% or wait the rates went up to .03% or whatever bs rate the bank gives you or would you rather own a cigarette company that owns 7 of the 15 biggest global brands and pays you 4%+ annually and that rate will grow by 10% for the forseeable future bc they're buying back shares like crazy and thus will increase the dividend more and more......and dont forget the payout ratio is 65% while most cigarette companies payout close to 90% so by the time they get there, watch out, massive dividend in 10-15 years.

I know many think cigarettes are declining, but that's here, they don't sell cigarettes in america. Countries like vietnam,indonesia,russia, etc are smoking at higher rates than ever, actually china alone is 40% of all cigarettes sold globally and their population is growing at 80 million new human being a year...think about that. PM also signed a licensing deal recently to get marlboro into that same china....no other company is in china except china tobacco and PM, so if PM can do what they did all over the world in china one day...watch out. Also they take income in every currency not named the USD, so if the USD ever falls off a cliff like many think it will....big big boon to PM

So don't think you can go wrong, but again, thats my take....everyone has their own opinion, could the price drop more? sure it could, but it wont be bc fundamentals changed. Look if i had to buy, id buy tomorrow sure, the dividend cutoff is monday, so i'd definitely buy tomorrow and get that juicy .85/share

This post was edited on 6/20/13 at 5:31 pm