Discussion on PM in portfolio
Hey everyone, can we discuss Phillip Morris vs …..
I currently have 5% of my portfolio in PM, this is from them growing 100+% since ownership. My portfolio construction is mostly upstream tech, industrials, medical, utilities, and I have a little bit of energy and discretionary. I like the thesis that as marijuana becomes federally legal and legal globally PM will capitalize and have more FCF. They pay a smaller dividend now than in the past because of the smokeless transformation and medical acquisitions. The reason I’m reaching out here is 5% in a dividend ballast company is safe and I’m not concerned about a major hit to them however there are other safe companies in my main sectors that grow more but have a smaller dividend.
Can anyone weigh in on the safety of having an outlier company for balance and dividends or downsize this position add more to my main portfolio thesis but market cycles will all correlate and I’d have less protection as the cycle changes.
Thought?