5 Safe Dividend Stocks with High Yields

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

Dividend Yield as of December 29: 5.38%

Number of Hedge Funds: 48

Philip Morris International Inc. (NYSE:PM) is a Swiss-American corporation that manufactures cigarettes, smoke-free products, other nicotine-based products and sells them in over 180 countries across the world. The tobacco giant declared a regular quarterly dividend of $1.25 per share on December 9. In September, the company’s normal quarterly dividend was increased by 4.2% to $5.00 per share on an annualized basis. The Stamford, Connecticut-based company was spun off from Altria Group, Inc. in 2008. Since then, Philip Morris International Inc. (NYSE:PM) has been increasing its dividend for the past 13 years.

Back in September 2021, the US International Trade Commission (ITC) banned the import and sale of IQOS devices in the US introduced by Philip Morris International Inc. (NYSE:PM) in 2020. This was because the product trespassed on the patents held by R.J Reynolds, a subsidiary of British American Tobacco. In early December 2021, President Biden’s administration also did not intervene in the US ITC’s decision after the end of the 60-day review period.

Following this development, Lisa K. Lewandowski at Bank of America maintained a Buy rating on Philip Morris International Inc. (NYSE:PM) stock in a research note issued on December 1. The analyst anticipates Philip Morris to challenge ITC’s decision as the corporation has challenged such patent infringement rights in the past as well. However, the appeal process can take more than one year, during which the import ban will remain imposed. Philip Morris International Inc. (NYSE:PM) is also anticipating a decision from the US Patent and Trade Office in January 2022 and April 2022 as the two patents, which are under question, will be reviewed, and a final decision will be made.