5 High-Yield Dividend Stocks Popular on Robinhood

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

Number of Hedge Fund Holders: 39

Dividend Yield as of May 20: 7.07%

Altria Group, Inc. (NYSE:MO) is an American producer of smokable and oral tobacco products. Altria Group, Inc. (NYSE:MO) posted its Q1 results on April 28, reporting earnings per share of $1.12, above Street estimates by $0.03. The $4.82 billion revenue missed market consensus by $56.68 million. Altria Group, Inc. (NYSE:MO) is a notable dividend payer, with an 11-year history of consistently rising dividend payments. 

On May 19, Altria Group, Inc. (NYSE:MO) declared a $0.90 per share quarterly dividend, in line with previous. The dividend is distributable on July 11, to shareholders of the company as of June 15. Altria Group, Inc. (NYSE:MO)’s dividend yield of 7.07% lies significantly above the consumer staples average yield of 1.89%. 

Deutsche Bank analyst Steve Powers raised the firm’s price target on Altria Group, Inc. (NYSE:MO) to $60 from $54 and reiterated a Buy rating on the shares following the Q1 results.

Among the hedge funds tracked by Insider Monkey in Q4 2021, 39 funds were long Altria Group, Inc. (NYSE:MO), down from 45 funds in the last quarter. The Q1 2022 filings reveal that Harris Associates is a notable stakeholder of the company, with a position worth over $397 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.”