BTI vs PM: Which Is the Better Dividend Stock?
As of Oct 27, 2026, PM (Philip Morris International Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. BTI offers the higher yield at 5.56%, PM has the higher dividend-safety score, and BTI looks like the better value (its fair-value estimate is 45% above its share price).
Key facts: BTI vs PM
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, British American Tobacco p.l.c. (BTI) has the higher forward dividend yield at 5.56%, versus 3.17% for Philip Morris International Inc. (PM).
- As of Oct 27, 2026, SmarterDividends grades BTI's dividend safety C (62/100) and PM's B (77/100).
- By SmarterDividends' count as of Oct 27, 2026, BTI has raised its dividend for 2 consecutive years and PM for 13.
- As of Oct 27, 2026, BTI pays out 84% of its earnings as dividends and PM pays out 84%.
- As of Oct 27, 2026, BTI's fair-value estimate is 45% above its share price and PM's fair-value estimate is 21% below its share price, so BTI looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BTI vs PM: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/bti-vs-pm
| Metric | BTI | PM |
|---|---|---|
| Forward yield | 5.56% | 3.17% |
| Annual dividend | $3.34 | $6.40 |
| Payout ratio | 84% | 84% |
| Years of growth | 2 yr | 13 yr |
| 5-yr dividend growth | 2.0% | 3.5% |
| 5-yr total return | 77% | 132% |
| Dividend safety score | 62 (C) | 77 (B) |
| Fair value estimate | $87.36 | $159.37 |
| Upside to fair value | +45% | -21% |
| Frequency | quarterly | quarterly |
| Market cap | $129.2B | $314.6B |
| P/E ratio | 15.3 | 29.5 |
Higher yield
BTI
5.56%
Safer dividend
PM
Grade B
Faster growth
PM
3.5%
Better value
BTI
+45% upside
BTI vs PM — FAQ
Is BTI or PM a better dividend stock?
On the data, PM wins more head-to-head categories (5 vs 3). BTI offers the higher yield (5.56%), while PM has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, BTI or PM?
BTI has the higher forward dividend yield at 5.56%, versus 3.17% for PM.
Is BTI or PM safer?
PM has the higher dividend-safety score (77/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is BTI or PM better value right now?
As of Oct 27, 2026, BTI looks like the better value: its fair-value estimate is 45% above its share price (undervalued). For PM, its fair-value estimate is 21% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.