5 Best CBD Stocks To Invest In

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

Number Of Hedge Fund Holders: 47

Altria Group, Inc. (NYSE:MO) is an American manufacturing company, that produces tobacco, cigarettes, and other related products. Following a strategic investment in Cronos Group (NASDAQ:CRON), the company expanded its portfolio to include cannabis and hemp-related products as well.

On May 19, Altria Group, Inc. (NYSE:MO) declared a $0.90 per share quarterly dividend, in line with the previous. The dividend is payable on July 11, to shareholders of record on June 15.

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

A leader and a household name in the cannabis and tobacco industries, 47 hedge funds out of the 912 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $1.95 billion at the end of the first quarter of 2022. This is compared to 39 hedge funds in the previous quarter with a total stake value of approximately $1.05 billion. Rajiv Jain’s GQG Partners is a leading shareholder in Altria Group, Inc. (NYS:MO), with over 18.3 million shares worth more than $956 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.”

Disclosure: None. You can also take a look at 10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins and 12 Best Large-cap Biotech Stocks To Buy Now.

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