5 Best 5% Dividend Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 63
Dividend Yield as of November 28: 5.17%

Philip Morris International Inc. (NYSE:PM) is a New York-based multinational tobacco company that sells its products in over 180 countries. In the third quarter of 2022, the company reported revenue of $8.03 billion, which beat Street estimates by $730 million. At the end of September, it had $5.3 billion available in cash and cash equivalents, compared with $4.4 billion nine months ago. For FY22, the company expects to generate $10.5 billion in operating cash flow.

Philip Morris International Inc. (NYSE:PM) is one of the best dividend stocks on our list as the company has been raising its dividends since its IPO in 2008. The company currently pays a quarterly dividend of $1.27 per share for a dividend yield of 5.17%, as recorded on November 28.

Argus upgraded Philip Morris International Inc. (NYSE:PM) to Buy in November with a $110 price target, as the company is exploring smoke-free business ideas and considering alternative means to produce risk-free products.

The number of hedge funds tracked by Insider Monkey owning positions in Philip Morris International Inc. (NYSE:PM) jumped to 63 in Q3 2022, from 56 in the previous quarter. These funds hold a collective stake value of over $4.68 billion.

Artisan Partners mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2022 investor letter. Here is what the firm has to say:

“On the positive side of the ledger, our top contributor was Swedish Match, a Swedish tobacco and nicotine products maker. The company received an all-cash takeover offer from rival Philip Morris International Inc. (NYSE:PM), which we also held in the portfolio, for SEK 106 per share—a 35% premium to Swedish Match’s prior closing share price. The deal is a good fit for PM as it reduces PM’s dependence on cigarettes—a category in steady decline—and accelerates the company’s transition to smokeless “reduced-risk” products (RRPs)—a category that has experienced rapid growth over the past five years. PM can also leverage its global scale to generate significant revenue synergies from these complementary product sets, as well as quickly gain access to the US market—the world’s largest market for RRPs and one where regulators have embraced RRPs and other less harmful nicotine products. We exited our position in Swedish Match as shares approached the takeout price.”