- By Ben Reynolds
Dividend growth investors are often drawn to securities with generous yields. This seems appropriate because the higher the yield, the more income produced. Sometimes, though, high yields can be a warning sign of the underlying business struggling. A high yield can also signal an upcoming dividend cut.
Other times, a business that is performing well can offer its shareholders a high yield that is unlikely to be cut. One of the best high-dividend stocks is Philip Morris International Inc. (PM).
- Warning! GuruFocus has detected 6 Warning Sign with PM. Click here to check it out.
- High Yield Dividend Stocks in Gurus' Portfolio
- companies, was created when its parent company, Altria (MO), spun off its international operations in 2008. Philip Morris sells, among others, the Marlboro brand, which is one of the most popular brand of cigarettes in the world. In fact, Philip Morris has six of the top 15 international cigarette brands. The company also sells IQOS, its heat-not-burn product line that is intended to offer consumers reduced-risk products. Philip Morris has a market capitalization of $131 billion, with annual sales of nearly $30 billion.