We have entered a new age of nicotine consumption. Led by Philip Morris International (NYSE: PM), consumers around the globe are turning from traditional cigarettes to safer ways to maintain their nicotine habits. The global tobacco giant is smartly cannibalizing its existing cash cow to position itself to dominate new markets in the coming decades.

Reporting second-quarter earnings on July 23, Philip Morris showed strong growth yet again. Even though the stock is up close to 20% year to date, it still has a healthy dividend yield of 4.6% compared to the S&P 500's yield of 1.3%. Does that make this dividend growth stock a buy?

Philip Morris International owns the Marlboro brand for every geography outside of the U.S. and China, as well as some other long-standing cigarette brands. Unlike in the U.S. where cigarette volumes are collapsing, the business has remained relatively stable in international markets due to population growth and greater cultural acceptance around smoking.

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Source Fool.com