September 2025: Philip Morris International increases its annual dividend by +8.9%
Philip Morris International (PMI) increased the its regular quarterly dividend by 8.9% to an annualized rate of $5.88 per share. The new quarterly dividend of $1.47 per share, up from $1.35 per share, is payable on October 20, 2025, to shareholders of record as of October 3, 2025. The ex-dividend date is October 3, 2025.
Since becoming a public company in 2008, PMI has increased its annual dividend every year, representing a total increase of 219.6%, or a compound annual growth rate of 7.1%. However, PMI’s annual dividend increase rate had considerably slowed down since 2015. The 8.9% increase in 2025 is PMI’s largest dividend hike since 2014 (- yet, the 6th largest in the PMI’s history) and is the largest hike among the tobacco majors in 2025. Based on the latest FY25 EPS guidance of $7.43-7.56 (mid-point: $7.5), PMI’s dividend payout ratio is 78.5%.
August 2025: Altria increases its annual dividend by +3.9%
Altria increased its regular quarterly dividend by +3.9% to $1.06 per share versus the previous rate of $1.02 per share. This increase marks Altria’s 60th dividend hike in the past 56 years. The quarterly dividend is payable on October 10, 2025 to shareholders of record as of September 15, 2025. The ex-dividend date is September 15, 2025. The new annualized dividend rate is $4.24 per share, representing a dividend yield of 6.3% based on the closing stock price of $67.58 on August 20, 2025.
Altria’s 2025 dividend increase is consistent with its progressive dividend goal that targets mid-single digits dividend per share growth annually through 2028. Based on the latest FY25 EPS guidance of $5.35-5.45 (mid-point: $5.4), Altria’s dividend payout ratio is 78.5%.
February 2025: British American Tobacco announces the 2025 Dividend Schedule
British American Tobacco announced the 2025 Dividend Schedule. For the 2025 fiscal year, BAT will pay out a total dividend of 240.24p (yield: 7.5%) in four equal quarterly instalments of 60.06p per share in May 2025, August 2025, November 2025 and February 2026.
For holders of American Depositary Shares (ADSs) listed on the New York Stock Exchange (NYSE), ex-dividend dates are one day after the London Stock Exchange (LSE) dates. The ADS dividends (in US$) are calculated based on the exchange rate on the applicable payment date – minus US$0.01 quarterly depositary bank fee charged by Citibank.
February 2025: British American Tobacco Increases its Regular Dividend by +2%
British American Tobacco (BAT) increased the regular quarterly dividend by +2% – from 58.88p/share to 60.06p/share. The new annualized dividend amount is 240.24p per ordinay share (yield: 7.8%).
October 2024: Imperial Brands Increases its Regular Dividend by +4.5%
Imperial Brands increases FY24 annual dividend by +4.5% to 153.43 pence per share in line with its progressive dividend policy. This increase will result in two quarterly dividends of 54.26 pence per share to be paid in December 2024 and March 2025. Moreover, Imperial changes the future dividend payment profile to four equal quarterly dividend payments for FY26 onwards based on the premise that smoothing of the dividend payment profile will result in more consistent cash returns to shareholders throughout the year, compared to the current 30:70 split. Smoothing, enabled by the better visibility of cash flows from the portfolio, will also reduce the leverage variance within the year, particularly around the half year, which is partly a result of the current dividend phasing.
To create the base for future quarterly payments, Imperial will pay two interim cash dividends of 40.08 pence per share in June and September 2025 (- also including a further 4.5% year-on-year increase). These payments will be higher than would otherwise have been the case, resulting in a temporary acceleration of dividend cash payments of ~£270 million in FY25.
A schedule of the proposed dividend cash payments for FY25 is as follows:
September 2024: Philip Morris International Increases its Regular Dividend by +3.8%
The Board of Directors of Philip Morris International increased the company’s regular quarterly dividend by 3.8% from an annualized rate of $5.20 to $5.40 per share – corresponding to 4.3% annual yield based on the last close price ($125.26).
The new quarterly dividend of $1.35 per share, up from $1.30 per share, is payable on October 10, 2024, to shareholders of record as of September 26, 2024. The ex-dividend date is September 26, 2024.
August 2024: Upcoming dividend changes
Mid-Sept 2024: Philip Morris International (PMI) is likely to announce a dividend increase in mid-Sept. We expect the quarterly dividend to be raised by +3.8% from $1.3 to $1.35 (annual rate: $5.40) – corresponding to an annual yield of 4.5% based on the last close price.
A larger increase (e.g. lifting the quarterly dividend above $1.35) would come as a surprise considering PMI’s tough deleveraging (debt reduction) targets: net debt to adjusted EBITDA ratio improvement of 0.3x to 0.5x (at prevailing exchange rates) in 2024 and leverage ratio of around 2x by the end of 2026.
Since the spin-off from Altria (2008-2023), PMI increased it annual dividend by +182.6% from $1.84 to $5.20 – representing a compounded annual growth rate of 7.2%. However, there is a remarkable slow-down in dividend growth since 2015 – in this period, PMI increased its annual dividend by 3% per annum on average. This period can be characterized by the increased RRP investments (global roll-out of IQOS), Swedish Match acquisition and stronger US$ (dxy index moving from the 70-90 to 90-110 range) – all of which are putting pressure on PMI’s free cash-flow available to the equity owners. Recall that PMI suspended the share repurchases following the Swedish Match acquisition and no share repurchases are foreseen in the 2024-26 period as it prioritizes dividend payments and debt reduction.
Recent changes
(1) August 22, 2024: Altria increased the regular quarterly dividend by 4.1% – from $0.98/share to $1.02/share. The new annualized dividend amount is $4.08/share. This increase marks the 59th Altria dividend increase in the past 55 years. Altria aims to deliver mid-single digit annual dividend growth through 2028.
(2) March 5, 2024: STG increased the annual dividend by 2% – from kr.8.25/share to kr.8.40/share
(3) February 13, 2024: Japan Tobacco increased the annual dividend by 3.2% – from ¥188/share to ¥194/share
(4) February 8, 2024: BAT increased the regular quarterly dividend by 2% – from 57.72p/share to 58.88p/share. The new annualized dividend amount is £2.3552/share
(5) September 13, 2023: PMI increased the regular quarterly dividend by 2.4% – from $1.27/share to $1.30/share. The new annualized dividend amount is $5.20/share
(6) June 29, 2023: KT&G declared an interim dividend for the first-time in its history in 2023 (₩1,200; ex-dividend date: 29.06.23). Including the regular dividend of ₩4,000 (ex-dividend date: the last week of 2023), total dividend payout adds up to ₩5,200. As in 2023, KT&G also declared an interim dividend in 2024 (₩1,200; ex-dividend date: 27.06.24). Thereby, we expect K&G to continue to pay out its annual dividend in two tranches (interim & regular) going forward.
