5 Best Consumer Staples Dividend Stocks to Buy Now

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

Dividend Yield as of November 8: 5.53%

Philip Morris International Inc. (NYSE:PM) is a New York-based multinational tobacco company that markets and sells its products in over 180 countries. Morgan Stanley raised its price target on the stock in November to $109 with an Overweight rating on the shares, following the company’s recent agreement with Altria Group.

Philip Morris International Inc. (NYSE:PM) is one of the best dividend stocks on our list as it has been raising its dividends consistently since its IPO in 2008. It currently pays a quarterly dividend of $1.27 per share and has a dividend yield of 5.53%, as of November 8.

At the end of Q2 2022, 56 hedge funds tracked by Insider Monkey owned stakes in Philip Morris International Inc. (NYSE:PM), compared with 55 in the previous quarter. These stakes hold a combined value of $6.8 billion. Fundsmith LLP was one of the company’s most prominent shareholders in Q2.

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.”