Philip Morris International (PM)

Philip Morris is paying out about 85 cents of every dollar it earns.

What is going on right now?

The stock drifted down slightly over the past week, losing a little over 1%, but it is still up roughly 5% over the past month.

How is the business itself doing?

Sales grew about 5.5% recently, driven by smoke-free products like IQOS, ZYN nicotine pouches, and VEEV. But profits actually shrank nearly 5%, so the company is earning more but keeping less of it.

What stands out?

Philip Morris has strong cash coming in, around $11.5 billion, yet its debts exceed what it owns on paper. It keeps almost all its earnings flowing out to shareholders, leaving a thin cushion.

What comes next?

The company's ability to keep growing its smoke-free brands faster than traditional cigarette sales decline shows up in each quarterly earnings report.