Top 5 High Dividend Stocks To Buy Now

3. Philip Morris International (PM)

Philip Morris is another tobacco stock in our list of best dividend stocks to buy, offering an annualized dividend yield of 6.85%. PM’s forward P/E ratio is less than 13 according to Yahoo Finance. First Eagle Investment Management said the following about this tobacco giant in its Q2 investor letter:

“Philip Morris was able to recover some of the ground lost during the first quarter selloff but remains well below its early-year highs. Tobacco industry volumes were hurt by Covid-19, as lockdowns and other social-distancing restrictions in certain key markets hurt demand. Duty-free sales also suffered given the lack of global travel during the period. Given its pricing power, cost discipline and robust balance sheet, we believe Philip Morris appears well positioned to navigate the ongoing transition from traditional combustible tobacco products to “heat not burn” alternatives.”

There were a total of 53 hedge funds with bullish PM bets, an increase of 5 since the end of March. The largest hedge fund stake in Philip Morris International Inc. (NYSE:PM) was held by Cedar Rock Capital, which reported holding $686 million worth of stock at the end of September. It was followed by Gardner Russo & Gardner with a $578 million position.