Dear Mr. Berko: I read that you recently recommended Altria stock for growth and income. So I bought 150 shares. My broker has suggested that I also buy 100 shares of Philip Morris. What do you think of Philip Morris, and could you tell me the difference between the two companies?
— F.L., Syracuse, N.Y.
Dear F.L.: Back when I was in high school — when family doctors, dentists, health care workers and even veterinarians were extolling the health benefits of smoking — Johnny Roventini was one of the most popular actors on radio and TV. Few folks knew his name, but Roventini’s character portrayal became an enormously popular household name. Roventini, an actor who suffered from dwarfism, was famous for wearing a bellhop uniform while loudly but slowly enunciating one of the most famous four-word sentences in advertising: “Call for Philip Morris.”
In March 2008, Philip Morris International (PM-$82) was spun off from its parent, Altria Group (MO-$54), in order to separate its domestic business and its international business. All MO shareholders, as of the March 2008 record date, received one share of Philip Morris (worth $50) for each share of MO they held. And the smart shareholders, who held on to the spinoff they received at $50, have earned a swell gain and sweet dividends in the past six years.
PM’s executive offices are located on Park Avenue in New York, but its operations are headquartered in Lausanne, Switzerland. Its popular brands are Merit, Lark, Virginia Slims, L&M, Marlboro, Philip Morris, Chesterfield (some readers may recall that Chesterfield sponsored Ted Mack’s “Original Amateur Hour”) and Parliament, with its recessed filters.