LW vs PM: Which Is the Better Dividend Stock?
As of Oct 18, 2026, PM (Philip Morris International Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. PM offers the higher yield at 3.12%, PM has the higher dividend-safety score, and PM looks like the better value (its fair-value estimate is 21% below its share price).
Key facts: LW vs PM
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Philip Morris International Inc. (PM) has the higher forward dividend yield at 3.12%, versus 2.84% for Lamb Weston Holdings, Inc. (LW).
- As of Oct 18, 2026, SmarterDividends grades LW's dividend safety B (71/100) and PM's B (72/100).
- By SmarterDividends' count as of Oct 18, 2026, LW has raised its dividend for 8 consecutive years and PM for 13.
- As of Oct 18, 2026, LW pays out 83% of its earnings as dividends and PM pays out 84%.
- As of Oct 18, 2026, LW's fair-value estimate is 26% below its share price and PM's fair-value estimate is 21% below its share price, so PM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "LW vs PM: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/lw-vs-pm
| Metric | LW | PM |
|---|---|---|
| Forward yield | 2.84% | 3.12% |
| Annual dividend | $1.52 | $6.40 |
| Payout ratio | 83% | 84% |
| Years of growth | 8 yr | 13 yr |
| 5-yr dividend growth | 10.0% | 3.5% |
| 5-yr total return | 3% | 139% |
| Dividend safety score | 71 (B) | 72 (B) |
| Fair value estimate | $39.40 | $161.23 |
| Upside to fair value | -26% | -21% |
| Frequency | quarterly | quarterly |
| Market cap | $7.4B | $319.8B |
| P/E ratio | 29.3 | 29.5 |
Higher yield
PM
3.12%
Safer dividend
PM
Grade B
Faster growth
LW
10.0%
Better value
PM
-21% upside
LW vs PM — FAQ
Is LW or PM a better dividend stock?
On the data, PM wins more head-to-head categories (6 vs 2). PM offers the higher yield (3.12%), 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, LW or PM?
PM has the higher forward dividend yield at 3.12%, versus 2.84% for LW.
Is LW or PM safer?
PM has the higher dividend-safety score (72/100 vs 71/100), reflecting stronger payout coverage and dividend-growth history.
Is LW or PM better value right now?
As of Oct 18, 2026, PM looks like the better value: its fair-value estimate is 21% below its share price (overvalued). For LW, its fair-value estimate is 26% below its share price.
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.