Philip Morris rated 'Buy' for strong dividends, growth, and share buybacks potential

Philip Morris International is recommended as a 'Buy' due to its strong income, robust dividend growth, and potential for capital appreciation. Its smoke-free products now make up 43% of revenue, with IQOS leading key markets. The company aims to reduce net debt to twice EBITDA by 2026, which could lead to a credit upgrade and enable share buybacks to boost earnings per share. With a 3.6% dividend yield and sustainable payout ratios, Philip Morris is positioned for high single-digit dividend growth and potential 12% annual total returns.