Philip Morris Boosts Quarterly Dividend 9.1%

Philip Morris Cos., the worst performer on the Dow Jones industrial average so far this year, raised its quarterly dividend by 9.1%, at the high end of analysts’ expectations. The company boosted its payout to 48 cents a share from 44 cents, payable Oct. 12 to shareholders as of Sept. 15. That puts the stock’s dividend yield at about 5%, topping the 1.2% average yield among companies in the Standard & Poor’s 500-stock index. Philip Morris shares have fallen about 28% this year, hurt by two record jury awards in suits by individual smokers and the federal government’s announcement it may sue the tobacco industry to recoup money spent treating sick smokers. “Despite the market’s concern, the magnitude of this increase indicates that management thinks the litigation risks remain manageable,” said Morgan Stanley Dean Witter analyst David Adelman, who rates Philip Morris shares “outperform.” Philip Morris shares rose $1.63 to close at $39.13 on the NYSE.. Separately, the company said tennis legend Billie Jean King, 55, was elected to serve on its board, increasing its size to 16 directors from 15.