Originally Posted by bucksfan2
In an attempt to simplify my portfolio I am looking to get rid of one of these and put the proceeds in the other. RAI and PM.
RAI is Reynolds American Cigarette in the US. Pays a higher dividend 5.74% but are pretty much in a mature market.
PM is Phillip Morris International. They don't pay as high of a yield 3.91% but have more room to grow in the emerging market.
I am leaning to sell in my RAI and investing in PM. I think RAI is a safer play but PM has more growth opportunities as well as paying a nice dividend. Thoughts?
Most of the people that discuss this over at Seeking Alpha prefer PM. In my wife's portfolio we were in MO for a while and most seemed to prefer PM to MO.
Here's an article today from Seeking Alpha about them