5 Best Dividend Stocks to Buy According to Morgan Stanley’s Quant Screen: In Retrospect

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

Dividend Yield as of December 28: 4.95%

Quarterly Performance as of December 28: 15.56%

Total Expected Return: 21%

Number of Hedge Fund Holders: 63

Philip Morris International Inc. (NYSE:PM) is a leading multinational tobacco company, headquartered in New York City, USA. On December 8, Philip Morris International Inc. (NYSE:PM) declared a quarterly cash dividend of $1.27 per common share. The dividend is payable on January 11, to stockholders of record at the close of business on December 22. The stock is offering a forward dividend yield of 4.95%, as of December 28, and has returned 15.56% to investors in the fourth quarter. Morgan Stanley analysts expect a further upside of roughly 5% from current levels.

On November 15, Argus analyst David Coleman upgraded Philip Morris International Inc. (NYSE:PM) to Buy from Hold and reiterated his $110 price target.

At the end of the third quarter of 2022, 63 hedge funds held stakes in Philip Morris International Inc. (NYSE:PM). The total value of these stakes amounted to $4.68 billion. As of September 30, GQG Partners is the top investor in the company and has disclosed a position worth $1.44 billion.

Here is what investment management firm, Coho Partners had to say about Philip Morris International Inc. (NYSE:PM) in its third-quarter 2022 investor letter:

“Coho is not immune to the earnings pressure exerted by a strong USD, although the portfolio on the whole has modestly less foreign revenue exposure relative to the S&P 500 Index. The two most impacted Coho stocks includes Philip Morris International, which essentially derives all of its revenues outside the U.S. Harkening back to Table 1, the decline in Philip Morris earnings for 2022 versus the reported earnings in 2021 is entirely related to the strengthening dollar. On a constant currency basis, Philip Morris’ earnings in 2022 would be up mid to high single digits.”