5 Best Income Stocks To Invest In

In this article, we discuss 5 best income stocks to invest in. If you want to see more stocks in this selection, check out 12 Best Income Stocks To Invest In. 

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

Number of Hedge Fund Holders: 56

Dividend Yield as of October 19: 5.85%

Philip Morris International Inc. (NYSE:PM), the New York-based tobacco giant, is one of the best income stocks to invest in. On September 14, Philip Morris International Inc. (NYSE:PM) declared a $1.27 per share quarterly dividend, a 1.6% increase from its prior dividend of $1.25. The dividend was distributed to shareholders on October 12. The dividend yield on October 19 came in at 5.85%. 

Morgan Stanley analyst Pamela Kaufman on October 14 reiterated an Overweight rating on Philip Morris International Inc. (NYSE:PM) but lowered the price target on the shares to $102 from $112. While trimming her target, the analyst said she expects Philip Morris International Inc. (NYSE:PM) to post “solid” Q3 results and that her latest meetings with management underscored resilient underlying fundamentals. Given the stock’s 12% pullback over the last month and present valuation, she sees an “attractive buying opportunity”.  

According to Insider Monkey’s data, 56 hedge funds were long Philip Morris International Inc. (NYSE:PM) at the end of the second quarter of 2022, compared to 55 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 30.4 million shares valued at $3 billion. 

Here is what Artisan Partners specifically said about Philip Morris International Inc. (NYSE:PM) in its Q2 2022 investor letter:

“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.”