5 Dividend Stocks to Buy According to Billionaire Steve Cohen

3. Altria Group Inc (NYSE:MO)

Stake Value of Point72 Asset Management: $354,000

Percentage of Point72 Asset Management’s 13F Portfolio: 0%

Number of Hedge Fund Holders: 45

Dividend Yield as of December 12: 7.98%

Altria Group Inc (NYSE:MO) manufactures and sells cigarettes, oral tobacco products, and wine in the United States. On December 8th, Altria Group Inc (NYSE:MO) announced that its board of directors declared a quarterly cash dividend on the company’s common stock of $0.90 per share. The stock has a forward yield of 7.98%, and the common stock cash dividend is payable on 10th January 2022, to shareholders of record on December 23rd, 2021.

By the end of the third quarter of 2021, there were 45 hedge funds in Insider Monkey’s database that held stakes in Altria Group Inc (NYSE:MO) that were in excess of $829.78 million.

Broyhill Asset Management, an investment management firm, mentioned Altria Group Inc (NYSE:MO) in its second-quarter 2021 investor letter. Here’s what they had to say:

“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.”