Latest news with #Zyn
Yahoo
21 hours ago
- Business
- Yahoo
Billionaire Stanley Druckenmiller Owns $175 Million of This Brilliant Dividend Growth Stock
Philip Morris International is one of the largest positions in Stan Druckenmiller's portfolio. The stock has soared because of its leading position in disruptive nicotine categories. The stock can produce plenty of dividend growth for the rest of this decade. 10 stocks we like better than Philip Morris International › It can pay to follow billionaire fund manager Stanley Druckenmiller, who has put up phenomenal market-beating returns for decades. One of the largest positions in his Duquesne Family Office is Philip Morris International (NYSE: PM). He owns $175 million worth of the stock, first purchased in the second quarter of 2024. Since then, shares have posted a total return of more than 100% as investors have gotten excited about the company's growth with new nicotine brands that are replacing cigarettes. Here's the brilliance behind Philip Morris' strategy, and why this is the perfect dividend growth stock over the next 10 years. Spun out as an independent company almost two decades ago, Philip Morris International is one of the leading tobacco companies that sells outside of the United States, while Altria Group sells its brands domestically. One benefit of owning Philip Morris International is the international diversification it can provide for your portfolio. Even though the company reports in U.S. dollars, the revenue it collects is generally outside the United States, which can help investors when the dollar is getting devalued versus foreign currencies, as is happening today. The stock has soared mainly because of the major investments the company made beyond cigarettes that are now bearing fruit. It has the leading nicotine pouch brand called Zyn, which is growing like wildfire in the United States, and with incredible profit margins. The brand has gone from virtually nothing 10 years ago to selling more than 200 million cans a quarter in the country. More globally, the Iqos heat-not-burn device brand is the leader in the category that is popular in Europe and Japan, driving tons of new revenue and earnings for Philip Morris International. Overall, 42% of the company's revenue now comes from its smoke-free business, driving overall revenue to $38.4 billion over the last 12 months. Dividends are the way that Philip Morris returns capital to shareholders. Its dividend yield is much lower than a year ago at 3%, but it still offers a solid yield for shareholders. One big factor in this dividend consistency is the steady cash flow produced by the legacy cigarette business. Usage for cigarettes is slowly declining in the markets in which it operates, but the company is in a much better position outside of the United States because of its exposure to countries with growing populations. It also has the leading brands that consumers of nicotine are switching to buy. Today, Philip Morris pays a dividend per share of $5.35. This will be funded by its free cash flow per share, currently at $6.55. No cash flow, no dividends. It's that simple at the end of the day. Free cash flow is actually depressed right now because of the large manufacturing build-out for nicotine pouches and heat-not-burn growth. Over the next five years, investors should see an inflection in free cash flow per share up to $10 or higher. In turn, this gives the company plenty of room to grow its dividend-per-share payout, which will boost the dividend yield as long as the stock price doesn't go up. Around 10% dividend growth for the next five years will put the stock's dividend-per-share payout at $8.61, which is well below what the company can generate in free cash flow. This gives the company an easy path to keep growing its dividend payout for shareholders. Even though the stock is up 100% in the last 12 months or so, Philip Morris International stock may still be a solid buy for investors today. Don't expect 100% returns every year, but the math works out that this stock is still cheaper than most you can buy today. It has a forward price-to-earnings ratio (P/E) of 24, which is not overly expensive for a consistent earnings grower. The dividend yield is well above the stock market average, with plenty of room to grow this yield in the years to come. Philip Morris has the dominant position in the growing trend of nicotine use without tobacco, which will make it a market share taker versus competitors. Put it together, and Philip Morris International is a great stock to buy and hold for the long haul. No wonder Druckenmiller has it as one of the largest positions in his portfolio. Before you buy stock in Philip Morris International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Philip Morris International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy. Billionaire Stanley Druckenmiller Owns $175 Million of This Brilliant Dividend Growth Stock was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
This Monster Dividend Growth Stock Is Up 50% So Far This Year
Philip Morris International is seeing growing demand for its alternative nicotine products and is getting a boost from a depreciating dollar. The company is still harvesting a ton of cash flow from its legacy cigarette business. The stock is more expensive than previously but can still deliver sold returns for shareholders. 10 stocks we like better than Philip Morris International › The stock market has been choppy in 2025. Dipping and soaring seemingly each month, the S&P 500 index is basically now flat this year. Philip Morris International (NYSE: PM) has gone straight up and to the right. Shares of the international nicotine giant have posted a 50% total return so far in 2025, making it one of the best-performing large-cap stocks of the last few months and crushing the index returns. It is a heavy dividend payer and benefiting from multiple tailwinds that should drive earnings much higher in the years to come. But is the stock still a buy today? Philip Morris International's returns are a cumulation of bets made over the past 10 years. The company rightfully saw that cigarette usage was declining around the world and pivoted its business to other nicotine products that are seeing strong consumer adoption. In the heat-not-burn category it has the leading brand called Iqos with 77% volume share in the markets it operates, making it the dominant player in the space. In nicotine pouches it owns the leading brand in Zyn with similar market share characteristics. Combined, Iqos and Zyn have changed the complexion of Philip Morris' business. Last quarter, 42% of the company's revenue came from smoke-free products, and 44% of gross profit. Higher gross profits from alternative nicotine products shows the better unit economics these brands have compared to cigarettes, which is a high bar. This is why Philip Morris' overall revenue has inflected higher in the last few years to $38 billion over the last 12 months. On top of its lead in new nicotine products, Philip Morris International is benefiting from a weaker U.S. dollar. The Dollar Index has fallen from around 110 to under 100 to start 2025, which shows the U.S. dollar depreciating compared to other currencies. Philip Morris International does not operate in the United States except with its Zyn brand (and with Iqos in the future), meaning that a depreciating dollar will help it earn more in revenue in U.S. dollar terms. Wall Street has anticipated this boost to revenue, adding more fuel to the stock price to start the year. Management at Philip Morris International made the brilliant move of investing in alternative nicotine products ahead of the competition. Cigarettes are going the way of the horse and buggy, likely becoming a smaller part of this business every year going forward. This does not mean the segment cannot generate heaps of cash flow for the next few decades. Outside of China and the United States -- where Philip Morris International does not operate for cigarettes -- global cigarette usage is expected to decline by 1% in 2025. Through pricing power, cigarettes can deliver revenue and earnings growth for Philip Morris International for a long while. This isn't the United States where volumes are declining by around 10% a year. Last quarter, combustibles gross profit grew 5.3% year over year for the company. Cigarettes are not dead yet. Especially not in the international markets where Philip Morris International operates. After delivering such strong returns to start 2025, investors may wonder if the stock's best days are behind it. Let's dive into the valuation to analyze whether that is true or not. The stock's forward price-to-earnings ratio (P/E) has risen to 24 compared to 14 at the start of last year. Its dividend yield is now 3% compared to close to 6% a year ago. Both these metrics make Philip Morris International stock more expensive in a vacuum compared to a year ago. Since price matters in investing, this rising valuation indicates to me that these monster 50% returns in less than a year are not sustainable for Philip Morris International stock. However, this does not mean the stock is a bad buy today. It still has a solid dividend yield of 3%, can keep growing its dividend payout, and trades at a P/E ratio around the market average. With the growth of Iqos and Zyn along with the pricing power of cigarettes, revenue and earnings can grow at a double-digit rate for many years into the future. This should lead to solid long-term returns for Philip Morris International shareholders. Just don't expect the same spectacular returns of the last few months. Before you buy stock in Philip Morris International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Philip Morris International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy. This Monster Dividend Growth Stock Is Up 50% So Far This Year was originally published by The Motley Fool
Daily Mail
4 days ago
- Entertainment
- Daily Mail
EXCLUSIVE I tried the $1 drug hailed as BETTER than Ozempic... the weight-loss results don't lie but now I can't stop
They're tiny — no bigger than a thumb nail — and discreet. That's what makes Zyn nicotine pouches so appealing to former smokers like me, especially on nights out when cravings hit hard. Your browser does not support iframes.
Yahoo
6 days ago
- Health
- Yahoo
The Rise of Nicotine in Wellness Culture — And Why It's So Dangerous
As a physician, I witness the subtle signs of nicotine use daily. I walk through clouds of sweet-smelling smoke from vape pens as I enter the grocery store. At traffic lights, I glance over to see drivers vaping, the thin cloud briefly visible before dissipating. I've spotted vape devices attached to keychains, teens with USB-shaped gadgets, and more recently, small pouches tucked discreetly inside lips, delivering nicotine invisibly to users of all ages. Nicotine delivery systems have experienced a surge in popularity. Sales of products like Zyn, a spitless oral pouch containing nicotine powder, increased by an astonishing 641 percent between 2019 and 2022. What's truly alarming isn't just their popularity but a disturbing new trend: nicotine being promoted not as a vice or even merely a smoking alternative, but as a wellness product. Scrolling through social media recently, I was stunned to see wellness influencers sharing, 'I woke up feeling overstimulated and instantly after putting a nicotine patch on, I was calm and could deal with my kids.' Even more concerning, I encountered a chiropractor promoting nicotine patches, confidently declaring, 'Nicotine is a published cure for Parkinson's disease, MS, Alzheimer's, ulcerative colitis.' He even claimed that 'autism traits have been tested with nicotine to show improvement.' Comments sections overflow with testimonials: 'better than my ADHD meds and all-natural!' But here's what these influencers aren't telling you: According to 'Nicotine has been proven to be as addictive as cocaine and heroin and may even be more addictive.' While there have been limited studies exploring nicotine's potential effects on certain neurological conditions, these findings have been preliminary, often misrepresented, and nowhere near establishing nicotine as a 'cure' for anything. For example, one study the chiropractor frequently references, published in January 2023, highlighted how nicotinic acetylcholine receptors may play a role in long COVID syndrome — a chronic condition that occurs after SARS-CoV-2 infection and persists for at least three months with a wide range of symptoms that may improve, linger, or worsen. While this study suggests nicotine's interaction with acetylcholine receptors might reduce inflammation in some COVID-19 cases, this science is being dangerously oversimplified on social media. The chiropractor repeatedly presents this as a blanket wellness breakthrough but conveniently ignores both the addictive nature of nicotine and the reality that individual health conditions vary dramatically. Promoting an addictive substance as a universal cure-all based on a study focused on one specific condition puts vulnerable people seeking relief for their various conditions, diseases, and even cancer at significant risk of developing a dependency and medical complications that may prove far worse than their original symptoms In stark contrast, reputable research indicates that nicotine exposure, primarily through smoking or vaping, is associated with increased risk of severe COVID-19 outcomes — the exact opposite of what wellness influencers might suggest. The National Institute on Drug Abuse explains that nicotine creates temporary feelings of well-being by triggering a surge of endorphins — chemicals that relieve stress and pain. It also increases heart rate and oxygen consumption. What makes nicotine particularly dangerous is how quickly the body absorbs it into the bloodstream, delivering it to the brain within seconds. These pleasurable sensations peak rapidly and dissipate just as quickly, creating a vicious cycle as users chase that fleeting high. More insidiously, nicotine increases levels of dopamine, a neurotransmitter central to the brain's reward system. This dopamine release reinforces nicotine-seeking behavior, leading to profound changes in brain function related to self-control, stress management, and learning. These alterations ultimately drive addiction and trigger withdrawal symptoms when nicotine levels drop. What starts as seeking symptom relief can quickly spiral into dependency, with users finding themselves trapped in a cycle of escalating use, increasing tolerance, and distressing withdrawal symptoms when they try to stop. The promised wellness benefits fade, while the addiction remains. The wellness influencers rarely mention nicotine's extensive side effects: Central nervous system: Dizziness, sleep disturbances, changes in blood flow, and headaches. Cardiovascular system: Increased risk of blood clotting, elevated blood pressure, and irregular heart rhythms. Respiratory system: Shortness of breath, bronchospasms, and increased risk of chronic conditions like COPD. Muscular system: Tremors and joint pain. Gastrointestinal system: Peptic ulcers, diarrhea, nausea, dry mouth, and indigestion. The tobacco industry has masterfully evolved its tactics. When menthol was first added to cigarettes in the 1920s, it created a cooling effect that reduced harshness and suppressed coughing, making smoking easier for beginners. Today's nicotine products follow the same playbook — they come in appealing flavors like citrus, peppermint, and coffee, making the experience of using an addictive substance more pleasant and approachable. The companies behind these products insist they're safer alternatives to cigarettes. There's some truth to this, as they don't produce the tar and carcinogens associated with burning tobacco. But 'safer' doesn't mean 'safe' — especially for non-smokers. Nicotine itself poses serious health risks, including the cardiovascular problems mentioned above, disrupted brain development in young users, and powerful addiction. What's most troubling is how easily these products can escape scrutiny. Unlike cigarettes or vaping, which produce visible smoke or vapor, nicotine pouches and patches leave no trace. This invisibility, combined with wellness industry endorsements, creates a perfect storm for a new addiction crisis affecting people seeking health solutions, not just recreational users. For individuals with ADHD seeking symptom relief, nicotine represents a dangerous gamble. Research shows people with ADHD may be more susceptible to nicotine addiction and experience more intense withdrawal symptoms when trying to quit. The temporary cognitive enhancement some report comes at the cost of potential lifelong addiction. We've been here before. When vaping products first emerged, regulation lagged behind adoption, and nicotine use spiked dramatically. We're at risk of repeating this mistake with these new nicotine products if we don't address the rampant misinformation on social media platforms. As a physician, I urge stronger regulations on nicotine products. The misinformation and disinformation online about these substances is truly scary and affecting real people's health decisions. Despite sleek packaging and wellness claims, these products contain highly addictive substances that can lead to lifelong dependency. Parents need to have honest conversations with children, healthcare providers must screen for all forms of nicotine use, and we must collectively recognize that smokeless doesn't mean harmless. The battle against nicotine addiction requires us to see through deceptive marketing and influencer endorsements. Introducing addictive substances to treat health conditions isn't a solution, but the beginning of another problem. The post The Rise of Nicotine in Wellness Culture — And Why It's So Dangerous appeared first on Katie Couric Media.
Boston Globe
27-05-2025
- Health
- Boston Globe
Are nicotine pouches like Zyn healthier than cigarettes? Here's what you need to know.
As nicotine pouches establish themselves as the 'next big thing' of the tobacco industry, here's what you need to know: What are nicotine pouches? Nicotine pouches are small, breath mint-sized microfiber pockets filled with nicotine powder, either from a tobacco plant or made in a lab, that are tucked between the user's cheek and gums. Advertisement Zyn is a brand of nicotine pouches, the most popular for the product based on Across brands, the pouches are sold in small cans with around 15-20 pouches in each for roughly $6 a can. The pouches are also made in multiple flavors, but those products' sale is limited in many communities, including in Massachusetts by a 2020 ban on Mountains are reflected in the windows of the international headquarters of Zyn parent company Philip Morris International, in Lausanne, Switzerland. Laurent Gillieron/Associated Press Who's using them? The pouches have quickly gained traction — the cans are seen anywhere from the desks of Advertisement In the first quarter of 2025, Zyn shipments increased by 53 percent from2024, according to Philip Morris. 'There used to be a couple brands, and now it seems like there's a lot of new competitors jumping in,' said Peter Brennan, executive director of the New England Convenience Store & Energy Marketers Association. The rise in use among young people is worrying doctors and public health officials — nicotine pouches were the second most commonly-used tobacco product among middle and high school students in 2024, lagging behind only e-cigarettes, according to the Much of the draw for young people to nicotine pouches, said Elise Stevens, an assistant professor at UMass Chan Medical School and director of the school's Center for Tobacco Treatment Research and Training, is built-in to the product — the pouches are easy to use and very discreet, packed in a small, colorful tin. Once they're placed in someone's cheek, they're barely noticeable. 'This can be something that is really appealing to young people because it can be hidden from teachers or from others in places where you're not supposed to smoke or vape,' said Stevens. Containers of Zyn, a smokeless nicotine pouch, are displayed for sale among other nicotine and tobacco products at a newsstand on Feb. 23, 2024, in New York. Bebeto Matthews/Associated Press Are nicotine pouches bad for you? The short answer from doctors and public health officials: a resounding 'yes.' The experts are worried what health effects will arise a few years down the line from the products, namely dramatic increases in gum disease cases. Advertisement However, the pouches can offer a form of harm reduction for a select group of people, said Sharon Levy, chief of the Division of Addiction Medicine at Boston Children's Hospital. For older adults who are already addicted to nicotine from cigarettes, the pouches can provide an alternative to move away from smoking. The switch is not a treatment for substance use disorders, she said, but rather just switching the use to a potentially less harmful form. The US Food and Drug Administration in January authorized the marketing of 20 Zyn products nationwide — two nicotine concentration amounts for 10 different flavors — on the basis of lower health risks than other tobacco products. What are the health risks of using nicotine pouches? The broad use of nicotine pouches is relatively new, so the long-term health impacts will have to wait. While nicotine does not introduce the body to the same chemicals as cigarette smoke, researchers have found numerous The risk of addition is one of the most immediate concerns voiced by doctors. Nicotine in any form is highly addictive, said Levy, but the most addictive products are ones that get nicotine to the brain the fastest at the highest concentrations, making nicotine pouches a 'very addictive form,' she said, especially for children and young adults, whose brains are more susceptible to addiction and are first being introduced to nicotine through the pouches. Advertisement Maren Halpin can be reached at
