12 Best Dividend Stocks to Invest In According to Hedge Funds

7. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 82

Dividend Yield as of May 21: 3.12% 

Philip Morris International Inc. (NYSE:PM) operates as a global tobacco company. Its products include cigarettes and smoke-free alternatives. Its smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.

On May 20, BofA analyst Lisa Lewandowski raised the firm’s price target on Philip Morris International Inc. (NYSE:PM) from $200 to $209, while maintaining a ‘Buy’ rating on the shares. The target boost reflects an upside of almost 11% from the current price level.

BofA views the recent changes in the FDA’s enforcement approach towards vapes and nicotine pouches as “a positive development” for Philip Morris. The analyst believes that the stock deserves to trade at a premium, given the strength of its operations, visibility into smoke-free growth, and a resilient earnings outlook. BofA also highlighted the appointment of Massimo Andolina as Group CFO and noted that it expects “a smooth and orderly transition from Babeau to Andolina, with continuity in both strategy and capital allocation”.

With an impressive annual dividend yield of 3.12%, Philip Morris International Inc. (NYSE:PM) was also recently included in our list of the 10 Best High-Yield Dividend Growth Stocks to Buy Right Now.