3 Reasons to Buy Phillip Morris Stock
Up 6.6% year to date, Phillip Morris International (NYSE: PM) has ducked the bear market that has sent the S&P 500 index down 18% in the same time frame. As a tobacco company, it is resistant to many of the macroeconomic challenges rocking the economy. A reasonable valuation and large dividend yield are the icing on the cake for investors.
According to a Reuters poll of economists, the U.S. has a 60% probability of entering a recession in 2023. This is as the Federal Reserve continues to increase interest rates in an effort to calm rampant inflation, which stood at 7.7% as of October. The tobacco industry is somewhat shielded from these challenges because its key product, nicotine, is addictive, and consumers are likely to keep buying it, even when money is tight.
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Source Fool.com
