I own all three but PM and LO are my two largest by far.
PM pays $6 billion in dividends and also buys back $6 billion of their own shares each year. If the stock continues to fall they'll just buy back a larger percentage of their own shares. So I'll just keep adding to it as it falls.
Note: I'm also short 82.5 put options in my IRA so I may be buying more next week.
She upped her current position of PM by 5% which is also what the stock is already down year to date.
It's still her 2nd largest position: #1- BRK 15%, #2- PM 14%, #3- LO 8%, #4-JPM 5.7% (*short 57.5 call options that are in the money), #5 and #6- IBM and WFC both 5%, #7 and #8- AIG and MSFT both are 4.4%, #9-USB-3.8% and #10-COP 3.5% and also #11-KO 3.1% which could take JPM's place in February.
Grandma likes her dividends because in her case they're federally tax free.
"My" Projected Dividend verses 5 year treasury yield for the next three years:
2014- Div $4, 5yt yield-2%
2015- Div- 4.3, 5yt yield-2.5%
2016-Div- 4.7, 5yt yield- 3%
It the stock were to drop to 75 the yield would rise to 5.3% for this year-I don't think that's likely but let's hope you're right because their share repurchase program would become much more efficient which would cause me to up my future dividend projection estimates.
Fast Money guy used the word-egregious to describe its value.
Good word-synonyms: shocking, appalling, terrible, awful, horrendous, frightful, atrocious, abominable, abhorrent, outrageous
Grandma says to stay out of the stock until it trades at 10 times earnings.
She predicts it falls to 47.74 by the end of January.
Bought more PM in IRA #1-paid 83.55 per share increasing my holding by 14% to 8.3% of the assets in this account.
Also-STX is running wild-I may have to sell some and move it into PM or perhaps a preferred stock yielding 6.5% plus.
Also sold these put options in my Farm account. If shares are put to me at 82.5/share my net cost will be about 81.
PM 03/22/2014 82.50 P - PHILIP MORRIS INTL INC 3/22/2014 $82.50 Put