10 Best Affordable Dividend Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 102

Forward P/E Ratio as of February 26: 22.22

Philip Morris International Inc. (NYSE:PM) is a New York-based multinational tobacco company that also offers a wide range of related products. The company remained popular among hedge funds in the fourth quarter of 2024 as 102 funds tracked by Insider Monkey held stakes in the company, up from 75 in the previous quarter. The collective value of these stakes is over $12.6 billion.

Philip Morris International Inc. (NYSE:PM) delivered strong fourth-quarter results for 2024, reporting $9.7 billion in revenue—a 7.3% increase from the same period the previous year. Operating income rose 14.8% year-over-year to $3.3 billion. The company’s smoke-free segment performed exceptionally well, with shipments of heated tobacco units (HTU) and oral nicotine products exceeding 40 billion units for the first time in a single quarter.

Zyn, a nicotine pouch brand that uses nicotine powder and flavoring instead of tobacco, has been a key growth driver since its acquisition in late 2022. In Q4, sales volume for Zyn surged 46.2% to 183.8 million cans. Looking ahead, the company expects Zyn shipments to grow between 34% and 41% in 2025, reaching between 780 million and 820 million cans.

Philip Morris International Inc. (NYSE:PM) has also attracted investor interest with its strong dividend policy. As of February 25, the company pays a quarterly dividend of $1.35 per share, offering a 3.4% dividend yield. With 15 consecutive years of dividend growth, it remains one of the top dividend stocks on the market.