In this article, we discuss 5 best long-term dividend stocks with over 4% yield. If you want to see some more stocks from this list, click 10 Best Long-Term Dividend Stocks with Over 4% Yield.
5. Philip Morris International Inc. (NYSE:PM)
Dividend Yield as of April 4: 5.22%
Number of Years of Consecutive Dividend Increases: 14
Number of Hedge Fund Holders: 47
Philip Morris International Inc. (NYSE:PM) is a Swiss-American multinational tobacco company that sells cigarettes, vapor, and smoke-free products. Philip Morris International Inc. (NYSE:PM) has been consecutively increasing its dividends for 14 years, and the 5.22% dividend yield tops the industry average of 1.89%.
On March 10, Philip Morris International Inc. (NYSE:PM) declared a quarterly per share dividend of $1.25, in line with previous. The dividend will be distributed on April 12, for shareholders of record on March 24.
Stifel analyst Christopher Growe on March 25 maintained a Buy recommendation on Philip Morris International Inc. (NYSE:PM) but lowered the price target on the shares to $105 from $115. The rating and price target was in light of Philip Morris International Inc. (NYSE:PM) announcing its exit from the Russian market amid the war.
According to Insider Monkey’s Q4 data, Terry Smith’s Fundsmith LLP is the largest shareholder of Philip Morris International Inc. (NYSE:PM), with 20.4 million shares worth $1.94 billion. Overall, 47 hedge funds were bullish on the stock at the end of December 2021.
Broyhill Asset Management mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2021 investor letter. Here is what the firm had to say:
“Philip Morris (PM) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 23%. We shared our thoughts on these regulations during the quarter, which are available here.
‘PM Valuation. PM is up ~ 15% YTD and would have the most to gain under a nicotine cap. A cap would likely accelerate conversion to iQOS, which is 100% incremental for PM (PM also has zero exposure to combustible cigarettes in the U.S. and licenses its IQOS product for MO to distribute domestically). As such, the decline in PM was much more muted, with the stock hitting new 52 week highs a day after the Biden headline, driven by yesterday’s earnings release. It didn’t take long for investors to shift their attention back to fundamentals and the fundamentals here are best in class. In short, results beat estimates across the board (a recurring theme here), and management raised guidance for the full year (another recurring theme). IQOS continued to deliver impressive growth, recording continued market share gains on the heels of continued user acquisition growth, up 1.5M to 19.1M total users. Importantly, IQOS now represents nearly 30% of PM net revenues (management expects “smoke-free” products to represent more than half of their business by 2025, which should make the ESG folks happy), which is driving top-line growth and margin expansion. Hard to believe that they have created a product with higher margins than combustible cigarettes!! We expect PM operating margins to increase by 100bps – 200bps annually as IQOS continues to gain share. The stock trades at ~ 15x today or 2/3 of the market’s multiple for a business likely to generate $35B in cash flow – or 25% of the market cap – in just the next three years. Over the last decade, shares have traded at an average multiple of 18x and within a range of ~ 14x – 22x (+/-1 standard deviation). The stock yields 5.1% at the current price, and we expect management to resume share purchases in the back half of this year.’”
4. W. P. Carey Inc. (NYSE:WPC)
Dividend Yield as of April 4: 5.23%
Number of Years of Consecutive Dividend Increases: 26
Number of Hedge Fund Holders: 20
W. P. Carey Inc. (NYSE:WPC) is a New York-based real estate investment trust that leases out single-tenant industrial, warehouse, office, retail, and self-storage properties to commercial tenants. W. P. Carey Inc. (NYSE:WPC) has a history of increasing its annual dividend payments for 26 years consecutively.
On March 11, W. P. Carey Inc. (NYSE:WPC) announced a $1.057 per share quarterly dividend, a 0.2% increase from its earlier dividend of $1.055. The dividend is payable on April 14, to shareholders of record on March 31. W. P. Carey Inc. (NYSE:WPC)’s dividend yield on April 4 stood at 5.23%, above the industry average of 4.46%.
Dmitry Balyasny’s Balyasny Asset Management is the largest shareholder of W. P. Carey Inc. (NYSE:WPC) as of Q4 2021, with 383,804 shares worth $31.4 million. Overall, 20 hedge funds were bullish on the stock at the end of December 2021, compared to 24 funds in the prior quarter.
3. Universal Corporation (NYSE:UVV)
Dividend Yield as of April 4: 5.37%
Number of Years of Consecutive Dividend Increases: 51
Number of Hedge Fund Holders: 7
Universal Corporation (NYSE:UVV) is a significant dividend king, with the company increasing its dividends for 51 years back-to-back. Universal Corporation (NYSE:UVV) is a Virginia-based supplier of leaf tobacco and plant-based ingredients worldwide. The company offers a dividend yield that is higher than the average consumer staples sector yield of 1.89%.
On February 2, Universal Corporation (NYSE:UVV) declared a quarterly dividend of $0.78 per share. The dividend is distributable on May 2, for shareholders of the company as of April 11. Universal Corporation (NYSE:UVV) delivers a dividend yield of 5.37% as of April 4, and is one of the best long-term dividend stocks to consider.
Universal Corporation (NYSE:UVV) announced its financial results for the fourth quarter of 2021 on February 2, posting non-GAAP earnings per share of $1.80. The company’s revenue for Q4 came in at $652.6 million.
According to the fourth quarter database of Insider Monkey, 7 hedge funds held long positions in Universal Corporation (NYSE:UVV), with collective stakes amounting to $79.3 million. Pzena Investment Management is the biggest shareholder of the company, with 883,485 shares worth $48.5 million.
2. Culp, Inc. (NYSE:CULP)
Dividend Yield as of April 4: 5.76%
Number of Years of Consecutive Dividend Increases: 9
Number of Hedge Fund Holders: 8
Culp, Inc. (NYSE:CULP) is an American retailer of mattress and upholstery fabrics. The company was founded in 1972 and is headquartered in High Point, North Carolina. Culp, Inc. (NYSE:CULP)’s dividend yield on April 4 stood at 5.76%, and the company has consistently raised its dividend payouts for 9 years.
On March 2, Culp, Inc. (NYSE:CULP) declared a $0.115 per share quarterly dividend, in line with previous. The dividend is payable on April 19, to shareholders of record on April 11. Culp, Inc. (NYSE:CULP) also announced a Q4 revenue of $80.29 million, up 1.2% year-over-year.
According to the fourth quarter database of Insider Monkey, 8 hedge funds placed long bets on Culp, Inc. (NYSE:CULP), with combined stakes worth $17.6 million. Renaissance Technologies held the biggest position in the company, with 844,517 shares valued at more than $8 million.
1. Northwest Bancshares, Inc. (NASDAQ:NWBI)
Dividend Yield as of April 4: 5.98%
Number of Years of Consecutive Dividend Increases: 13
Number of Hedge Fund Holders: 13
Northwest Bancshares, Inc. (NASDAQ:NWBI) was founded in 1896 and is headquartered in Columbus, Ohio, operating as the holding company for Northwest Bank. Northwest Bancshares, Inc. (NASDAQ:NWBI) has consistently raised its dividends for 13 years in a row.
The average yield for the financial sector is 3.18%, and Northwest Bancshares, Inc. (NASDAQ:NWBI) exceeds the industry average with a yield of 5.98% as of April 4. The company announced a $0.20 per share quarterly dividend on January 20, which was paid to shareholders on February 14.
The full-year revenue of Northwest Bancshares, Inc. (NASDAQ:NWBI) for 2021 came in at $546 million, up from $440 million in the previous year. The net income for 2021 stood at $154.3 million, compared to $74.9 million in 2020. The cash flow also increased to $1.2 billion in 2021 from $736.3 million in 2020, enabling the company to likely continue its increasing dividend payments in the near future.
According to Insider Monkey’s Q4 data, 13 hedge funds were bullish on Northwest Bancshares, Inc. (NASDAQ:NWBI), with combined stakes of approximately $12 million. John Overdeck and David Siegel’s Two Sigma Advisors held the largest position in the company, with 224,540 shares worth over $3 million.
You can also take a look at 10 Most Anticipated IPOs of 2022 and 10 Undervalued Small-Cap Stocks to Buy Now.
