Philip Morris International Inc ( PM ) shares edged higher on Friday premarket after the tobacco giant announced a fresh boost to shareholder returns.

The company's board approved an 8.9% increase in its regular quarterly dividend, lifting the annualized payout to $5.88 per share.

Investors will receive the new quarterly dividend of $1.47 on October 20, if they are on record by October 3, with the ex-dividend date also set for October 3.

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Since becoming a standalone public company in 2008, Philip Morris ( PM ) has raised its dividend every year.

The cumulative increase is 219.6%, translating into a compound annual growth rate of about 7.1%.

The latest move underscores confidence in durable cash generation even as the global cigarette market contracts.

In a press release dated July 22, Philip Morris ( PM ) lifted its adjusted earnings per share forecast for fiscal 2025 to a range of $7.43 to $7.56, up from the prior $7.36 to $7.49.

Management now expects organic net revenue growth of 6% to 8% for 2025 and organic operating income growth of 11% to 12.5%.

Capital expenditures are projected at roughly $1.6 billion as the company continues investing in smoke-free offerings and next-generation technologies.

For the wider market, the company anticipates an international volume decline of about 1% for cigarettes and heated tobacco units (excluding China and the U.S.) in 2025.

Philip Morris ( PM ) projects its own total shipment volumes to grow around 1%, driven by a 12% to 14% increase in smoke-free products that partly offsets an expected ~2% decline in cigarette volumes.

For the third quarter, the company guided to adjusted EPS of $2.08 to $2.13.

Price Action: PM shares were trading higher by 2.81% to $166.30 at last check Friday.

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