Somebody help me here.
Altria is the cigarette company formally known as Prince; er, Philip Morris. And they've recently spun off Kraft and Philip Morris International. Maybe some other stuff; I don't recall.
Altria pays a dividend of 375% every few days, not to mention all the health benefits from smoking the product. Well, it actually yields 13.8% yearly according to Yahoo, and there are "scientific" studies that indicate that "the debate is over," there are health detriments from using the product.
But the investment drag could be that the US is passing more and more strict laws banning smoking (restaurants, cars, while pumping gasoline, etc.) and using cigarette taxes to fund government spending. It's the only way we've figured out how to tax the poor. It seems as if this could endanger growth and perhaps the dividend in the future, if fewer folks take up the habit down the road.
Philip Morris International doesn't pay a dividend, but it's all about smokin' international growth according to supporters like Slacker.
My thoughts here? I'm wondering if all this spinning off is due to concerns over the fear of lawsuits and legislation here in the US. I'm not sure how things work legally, but aren't there less assets now at MO then there were prior to the off-spinning? Other countries may be less likely to be as politically correct, so Philip Morris International may run free like the wind there.
I'm kind of rambling and maybe just looking for an excuse to post this picture. But if anyone has gone through the thought process on MO vs. PMI, please join in on the comments and let me know what you're thinking.
Do you buy the growth? Do you buy the dividend? Do you take a pass on both?