5 Dividend Stocks Redditors Buy for Early Retirement

In this article, we discuss 5 dividend stocks Redditors buy for early retirement. If you to see some more dividend stocks, go to 10 Dividend Stocks Redditors Buy for Early Retirement.

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

Number of Hedge Fund Holders: 39

Dividend Yield as of March 11: 7.13%

Headquartered in Richmond, Virginia, Altria Group, Inc. (NYSE:MO) manufactures and markets smokeable and oral tobacco products in the United States. Although green investors shy away from Altria Group, Inc. (NYSE:MO) due to its harmful products, Redditors were strongly inclined towards the tobacco manufacturer, owing to its high yield and solid dividend history. 

Altria Group, Inc. (NYSE:MO) on February 25 declared a $0.90 per share quarterly dividend, in line with previous. The dividend will be paid on April 29, to shareholders of record on March 25. Altria Group, Inc. (NYSE:MO)’s dividend yield on March 11 was 7.13%. 

Among the hedge funds tracked by Insider Monkey, 39 funds were bullish on Altria Group, Inc. (NYSE:MO) at the end of December 2021, as compared to 45 funds in the previous quarter. GQG Partners held the biggest stake in the company, owning over 9 million shares worth approximately $435 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.”