Core Insights - Philip Morris International Inc. (PM) is recognized as one of the Best High Yield Stocks to buy in October [1] - The company is undergoing a significant business transformation towards smoke-free products, which now account for 39% of its projected 2024 revenue [2] - The recent acquisition of Swedish Match strengthens PM's position in the growing nicotine segment, while a lawsuit dismissal regarding ZYN pricing alleviates previous concerns [2] Financial Performance - PM's heat-not-burn product, IQOS, generated over $3 billion in net revenue and holds a 76% share of the global heat-not-burn market [3] - In Europe, adjusted IQOS sales volumes increased by 9.1%, and in Japan, they grew by 7.8%, raising its market share to 31.7% [3] Dividend Information - On September 19, PM announced an 8.9% increase in its quarterly dividend to $1.47 per share, extending its dividend growth streak to 16 years [4] - The current dividend yield stands at 3.57%, with the stock going ex-dividend on October 3 [4]

Core Insights - The article discusses high yield stocks suitable for investment in October, emphasizing the importance of dividend investing and the need for careful selection to avoid yield traps [1][2] Group 1: Dividend Stocks Overview - Dividend investing is a long-term strategy that has historically outperformed during economic downturns [1] - Investors should focus on dividend durability and reliability rather than just high yields to avoid unsustainable dividend traps [2] - A dividend capture strategy allows investors to buy stocks just before dividends are paid and sell shortly after, focusing on dividend income [2] Group 2: Selected Stocks for Dividend Capture Strategy - Rithm Capital Corp. (NYSE:RITM) has an ex-dividend date of October 1, with a dividend yield of 8.03% and a quarterly dividend of $0.25 per share, consistent over ten years [8][10] - Sempra (NYSE:SRE) also has an ex-dividend date of October 1, offering a dividend yield of 2.91% with a quarterly dividend of $0.645, having increased its payout by 4% earlier this year [11][12] - Philip Morris International Inc. (NYSE:PM) has an ex-dividend date of October 3, with a dividend yield of 3.57% and a recent increase in its quarterly dividend to $1.47 per share, marking 16 years of dividend growth [14][16]

Core Insights - The survey indicates strong global support for smoke-free alternatives to cigarettes, with 78% of respondents agreeing that adult smokers should have access to better options [2][3] - There is significant concern (76%) that public health decisions are influenced more by ideology than by scientific evidence [3][6] - Countries that adopt smoke-free products have experienced declines in cigarette sales and smoking rates, highlighting the demand for evidence-based policies [4] Group 1: Public Support for Smoke-Free Alternatives - 80% of adults believe that smokers should have access to smoke-free options [1] - 74% of respondents think that encouraging smokers to switch to these products can improve public health [2] - 78% of respondents want their governments to consider scientific evidence regarding smoke-free alternatives before imposing restrictions [3] Group 2: Concerns Over Public Health Policies - 76% of respondents are concerned that decisions are made based on ideology rather than science [3][6] - 58% agree that it is wrong for governments to ban less harmful alternatives while allowing cigarette sales [6] - 61% believe it is a public health failure that 29% of the global adult population lives in countries where smoke-free alternatives are banned [6] Group 3: Market Access and Regulatory Environment - Over 190 million smokers in more than 20 countries lack legal access to smoke-free products, despite the availability of harmful cigarettes [5] - 82% of legal-age smokers in countries with bans on smoke-free products want the opportunity to purchase them legally [6] - The survey highlights a strong desire for governments to adopt policies that align with scientific findings, particularly in countries with existing bans [3][6] Group 4: Company Position and Investment - Philip Morris International has invested over $14 billion since 2008 in developing smoke-free products, aiming to end cigarette sales [8] - As of June 30, 2025, smoke-free products accounted for 41% of PMI's total net revenues [8] - PMI's smoke-free products are available in 97 markets, with over 41 million legal-age consumers using them [8]

Market Overview - The U.S. stock market is expected to experience volatility due to rising tensions between Israel and Iran, which have led to increased oil prices and concerns about a broader regional conflict [1] - Uncertainty surrounding the Federal Reserve's interest rate decisions amid these geopolitical risks is adding further pressure to the market [1] Investment Strategy - A curated portfolio of low-beta stocks is recommended as a strategy to navigate the uncertain market conditions [2] - Low-beta stocks such as VirTra Inc. (VTSI), Franco-Nevada Corporation (FNV), Elbit Systems Ltd (ESLT), and Philip Morris International Inc. (PM) are highlighted as potential investment opportunities [2] Stock Characteristics - Beta is a measure of a stock's volatility compared to the market, with a beta of 1 indicating movement in line with the market, greater than 1 indicating higher volatility, and less than 1 indicating lower volatility [3][4] - Stocks with a beta between 0 and 0.6 are screened for lower volatility, alongside other criteria such as positive price movement over the last month, average trading volume greater than 50,000, a price of at least $5, and a Zacks Rank of 1 (Strong Buy) [5][6] Company Insights - **VirTra Inc. (VTSI)**: The company is benefiting from the U.S. Army's Integrated Visual Augmentation System (IVAS) project, which enhances training for soldiers and positions VirTra favorably for military contracts [7][9] - **Franco-Nevada Corporation (FNV)**: Recently invested $1.05 billion in a royalty on the Côté Gold Mine, which is expected to close by Q2 2025, indicating strong revenue potential from significant gold resources [9][10] - **Elbit Systems Ltd (ESLT)**: The company has a substantial backlog of $23.1 billion, with 66% of its contracts coming from international markets, reflecting strong global demand for defense solutions [9][11] - **Philip Morris International Inc. (PM)**: Transitioning from traditional cigarettes to smoke-free products like IQOS and ZYN, while focusing on shareholder returns and cost-cutting measures [12]

Market Overview - A recent ruling by the U.S. trade court declared President Trump's global tariffs illegal, contributing to a new wave of market uncertainty [1] - The Federal Reserve's current wait-and-see approach adds to the uncertainty regarding future interest rate directions [1] Investment Strategy - Creating a curated portfolio of low-beta stocks is recommended as a strategy to navigate market volatility [1] - Low-beta stocks are less volatile than the market, providing a safeguard against uncertainty [1] Stock Recommendations - Suggested stocks include Natural Gas Services Group Inc (NGS), Stride Inc. (LRN), AptarGroup Inc. (ATR), and Philip Morris International Inc. (PM) [2] Stock Characteristics - Beta measures the volatility of a stock relative to the market, with a beta of 1 indicating movement in line with the market [3][4] - Stocks with a beta between 0 and 0.6 are screened for lower volatility [5] Screening Criteria - Stocks must have a positive price change over the last four weeks [5] - Average 20-day trading volume should exceed 50,000 to ensure liquidity [6] - Stocks must be priced at $5 or higher [6] - Zacks Rank of 1 indicates strong buy potential, suggesting significant outperformance over the next one to three months [6] Company Insights - **Natural Gas Services (NGS)**: Increased demand for liquefied natural gas (LNG) exports is driving the need for compression equipment, benefiting NGS as more pipelines are built [7] - **AptarGroup (ATR)**: Positioned for growth due to trends in healthcare moving towards home settings and rising demand for drug delivery systems [8] - **Stride Inc. (LRN)**: Focuses on innovative educational solutions, benefiting from the growing demand for school choice and tutoring services [10] - **Philip Morris International (PM)**: Transitioning from traditional cigarettes to smoke-free products, with a focus on shareholder rewards and cost-cutting initiatives [11]

Core Viewpoint - Philip Morris International Inc. is expected to show growth in both revenue and earnings for the first quarter of 2025, with revenue estimates around $9 billion, reflecting a 1.8% increase year-over-year [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for quarterly earnings is $1.61 per share, indicating a 7.3% increase from the previous year [2]. - The company has a trailing four-quarter earnings surprise average of 4% [2]. Smoke-Free Product Performance - Smoke-free products contributed 40% to the company's net revenues in Q4 2024, showcasing the success of its IQOS device and other innovations like IQOS ILUMA, ZYN nicotine pouches, and VEEV ONE e-vapor [3]. - The estimated revenue from smoke-free products for Q1 2025 is $3,576.89 million, up from $3,296 million in the same quarter last year [4]. Cost Management and Strategic Initiatives - Philip Morris has implemented cost-saving measures and strategic initiatives that have positively impacted its margins [4]. Currency Impact and Regulatory Challenges - The company anticipates a 4-cent unfavorable impact on adjusted EPS due to volatile currency movements [5]. - Strict government regulations, including mandatory precautionary labels and self-critical advertisements, are challenges that may affect cigarette consumption [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Philip Morris, with a Zacks Rank of 3 and an Earnings ESP of -1.83% [6].