Best Stock to Buy Right Now: Philip Morris International vs. British American Tobacco

Core Viewpoint - Tobacco stocks, particularly Philip Morris International and British American Tobacco, are appealing for dividend investors, with Philip Morris being favored for its growth and transition to smoke-free products [2][20]. Business Model Comparison - Philip Morris International is recognized for its international cigarette brands and the IQOS heat-not-burn product, which accounted for 36.5% of its revenue in 2023 [2][12]. - British American Tobacco, known for brands like Camel and Newport, recently took a $31 billion write-down on its U.S. cigarette business, indicating a shift towards smoke-free products [3][12]. Financial Performance - Philip Morris reported a 13.7$5.6 billion and a 22.2% rise in organic operating income to $2 billion [4]. - British American Tobacco's adjusted organic revenue rose 3.1$34.02 billion), with adjusted operating profit increasing 3.9% to £12.5 million ($15.5 million) [5]. Dividend and Valuation - British American Tobacco offers a higher dividend yield of 9.5$8.8 billion in Q1, with significant growth in smoke-free products, including a 20.9% rise in heated tobacco units [15]. - British American Tobacco's new categories saw a 21% revenue increase, contributing to 12% of its total revenue [14]. Overall Assessment - Philip Morris is seen as the better stock due to faster growth and progress in smoke-free product development, despite British American Tobacco's advantages in dividend yield and valuation [17][20].