DEO vs PM: Which Is the Better Dividend Stock?
As of Nov 6, 2026, PM (Philip Morris International Inc.) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. PM offers the higher yield at 3.18%, PM has the higher dividend-safety score, and DEO looks like the better value (its fair-value estimate is 19% below its share price).
Key facts: DEO vs PM
Data as of · Source: SmarterDividends data
- As of Nov 6, 2026, Philip Morris International Inc. (PM) has the higher forward dividend yield at 3.18%, versus 1.99% for Diageo plc (DEO).
- As of Nov 6, 2026, SmarterDividends grades DEO's dividend safety C (53/100) and PM's B (73/100).
- By SmarterDividends' count as of Nov 6, 2026, DEO has raised its dividend for 0 consecutive years and PM for 13.
- As of Nov 6, 2026, DEO pays out 107% of its earnings as dividends and PM pays out 88%.
- As of Nov 6, 2026, DEO's fair-value estimate is 19% below its share price and PM's fair-value estimate is 22% below its share price, so DEO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "DEO vs PM: Dividend Yield, Safety & Value Compared," updated Nov 6, 2026, https://smarterdividends.com/compare/deo-vs-pm
| Metric | DEO | PM |
|---|---|---|
| Forward yield | 1.99% | 3.18% |
| Annual dividend | $2.00 | $6.40 |
| Payout ratio | 107% | 88% |
| Years of growth | 0 yr | 13 yr |
| 5-yr dividend growth | 2.6% | 3.5% |
| 5-yr total return | -54% | 143% |
| Dividend safety score | 53 (C) | 73 (B) |
| Fair value estimate | $80.99 | $156.61 |
| Upside to fair value | -19% | -22% |
| Frequency | semiannual | quarterly |
| Market cap | $55.8B | $314.1B |
| P/E ratio | 32.1 | 29.4 |
Higher yield
PM
3.18%
Safer dividend
PM
Grade B
Faster growth
PM
3.5%
Better value
DEO
-19% upside
DEO vs PM — FAQ
Is DEO or PM a better dividend stock?
On the data, PM wins more head-to-head categories (7 vs 1). PM offers the higher yield (3.18%), 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, DEO or PM?
PM has the higher forward dividend yield at 3.18%, versus 1.99% for DEO.
Is DEO or PM safer?
PM has the higher dividend-safety score (73/100 vs 53/100), reflecting stronger payout coverage and dividend-growth history.
Is DEO or PM better value right now?
As of Nov 6, 2026, DEO looks like the better value: its fair-value estimate is 19% below its share price (overvalued). For PM, its fair-value estimate is 22% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.