5 Best Non-REIT Dividend Stocks To Buy

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In this article, we discuss 5 best non-REIT dividend stocks to buy. If you want to see more stocks in this selection, go see 12 Best Non-REIT Dividend Stocks To Buy

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

Number of Hedge Fund Holders: 56

Dividend Yield as of November 4: 5.62%

Philip Morris International Inc. (NYSE:PM) is a New York-based tobacco company that is focusing on developing products outside of the tobacco and nicotine sector. On October 20, Philip Morris International Inc. (NYSE:PM) reported its Q3 results, posting a non-GAAP EPS of $1.53 and a revenue of $8.03 billion, outperforming Wall Street estimates by $0.17 and $730 million, respectively. Philip Morris International Inc. (NYSE:PM) delivered a quarterly dividend per share of $1.27 on October 12. 

On November 2, Morgan Stanley analyst Pamela Kaufman raised the price target on Philip Morris International Inc. (NYSE:PM) to $109 from $102 and kept an Overweight rating on the shares. The analyst expects Philip Morris International Inc. (NYSE:PM) to launch IQOS in the US in spring 2024 and she sees IQOS driving incremental profit in 2027.

According to Insider Monkey’s Q2 data, 56 hedge funds were long Philip Morris International Inc. (NYSE:PM), compared to 55 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 30.4 million shares worth $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.”

Follow Philip Morris International Inc. (NYSE:PM)

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