10 Best High-Yield Dividend Stocks To Invest In

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

Number of Hedge Fund Holders: 75

Dividend Yield as of January 20: 4.44%

Philip Morris International Inc. (NYSE:PM) is an American multinational tobacco company that also offers a wide range of related products. In the third quarter of 2024, the company reported revenues of $9.9 billion, marking an 8.4% increase from the previous year. This exceeded analysts’ expectations by $220 million. The company’s operating income reached $3.7 billion, reflecting an 8.4% year-over-year growth. Philip Morris expressed confidence in its financial stability, projecting around $11 billion in operating cash flow for 2024.

Philip Morris International Inc. (NYSE:PM) has a clear strategy to achieve $20 billion in operating income over the next five years, positioning the company to generate significant value for shareholders. It plans to return most of these earnings through dividends and share buybacks, reflecting its commitment to shareholder-friendly capital allocation. This strong outlook makes it challenging for long-term investors to face losses over a 10-year period, as PMI’s market leadership and earnings potential offer a solid base for both growth and stability. In the past 12 months, the stock has surged by over 31.5%.

On December 12, 2024, Philip Morris International Inc. (NYSE:PM) declared a quarterly dividend of $1.35 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 15 consecutive years, which makes PM one of the best dividend stocks on our list. The stock offers a dividend yield of 4.44%, as of January 20.

Broyhill Asset Management made the following comment about PM in its Q3 2024 investor letter:

“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”

The number of hedge funds tracked by Insider Monkey owning stakes in Philip Morris International Inc. (NYSE:PM) jumped to 75 in Q3 2024, from 70 a quarter earlier. These stakes have a total value of more than $12.2 billion.