5 Blue Chip Dividend Stocks With Over 4% Yield

In this article, we discuss 5 blue chip dividend stocks with over 4% yield. If you want our detailed analysis of these stocks, go directly to 15 Blue Chip Dividend Stocks With Over 4% Yield. 

5. Altria Group, Inc. (NYSE:MO)

Dividend Yield as of January 28: 7.19%

Number of Hedge Fund Holders: 45

Altria Group, Inc. (NYSE:MO) is a Virginia-based company that produces and markets tobacco, cigarettes, and similar products. Altria Group, Inc. (NYSE:MO) owns a number of companies in its portfolio that specialize in smokeless tobacco, cannabis, and e-cigarettes. 

On January 27, Altria Group, Inc. (NYSE:MO) reported its Q4 results. The company posted earnings per share of $1.09, beating estimates by $0.01. The $5.09 billion revenue outperformed estimates by $88.06 million. 

Altria Group, Inc. (NYSE:MO) on December 8 declared a $0.90 per share quarterly dividend, in line with previous. The dividend was paid on January 10, to shareholders of record on December 23. Altria Group, Inc. (NYSE:MO)’s dividend yield as of January 28 stands at 7.19%. 

BofA analyst Lisa Lewandowski downgraded Altria Group, Inc. (NYSE:MO) to Neutral from Buy with a price target of $50, down from $56 on January 5. According to the analyst, Altria Group, Inc. (NYSE:MO) is likely to remain a “steady” earnings performer with limited input inflation and margin expansion, but her expectations of regulatory news flow may be an overhang on the stock in 2022.

Among the hedge funds tracked by Insider Monkey in Q3 2021, 45 funds reported owning stakes in Altria Group, Inc. (NYSE:MO), amounting to approximately $830 million. Harris Associates is the biggest Altria Group, Inc. (NYSE:MO) stakeholder, with 5.1 million shares worth $232.6 million.

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

“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.”