5 Best High Dividend Stocks Under $50

4. Altria Group Inc (NYSE:MO)

Number of Hedge Fund Holders: 47
Dividend Yield: 7.50%
Share Price as of October 14: $48.32

Altria Group Inc (NYSE:MO) ranks fourth on our list of the best high dividend stocks under $50. On August 26, the company’s board announced a 5% growth in its quarterly dividend at $0.90 per share, paying an annual yield of 7.5%.

Altria Group Inc (NYSE:MO), an American tobacco company, reported solid quarterly earnings on July 29. The company’s EPS of $1.23 beat the market consensus by $0.06. Similarly, Altria Group Inc (NYSE:MO) generated revenue of $5.6 billion, beating the estimates by $240 million. Harris Associates is the company’s largest shareholder, with shares worth $243.3 million. Overall, 47 hedge funds tracked by Insider Monkey were bullish on Altria Group Inc (NYSE:MO) in Q2 2021, valued at $948.9 million. In the previous quarter, the number of hedge funds having stakes in the company stood at 38, which highlights the positive hedge fund sentiment in Q2.

In September, BofA lifted its price target on Altria Group Inc (NYSE:MO) to $54, while keeping a Buy rating on the shares. The stock gained 22.6% in the past year.

Broyhill Asset Management mentioned Altria Group Inc (NYSE:MO) in its Q2 2021 investor letter. Here is what the firm has to say:

“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.

MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”