5 Best High-Dividend Stocks Under $100

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

Share Price as of October 18: $86.37
Dividend Yield as of October 18: 5.88%

An American multinational tobacco company, Philip Morris International Inc. (NYSE:PM) has been raising its dividends consistently since its IPO in 2008, accomplishing as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $1.27 per share for a dividend yield of 5.88%, as recorded on October 18.

In Q2 2022, Philip Morris International Inc. (NYSE:PM)’s free cash flow also remained strong at $3.2 billion, growing from $889 million in the preceding quarter. Its dividends are safe with a payout ratio of 85.7% and its five-year average dividend payout ratio stands at 94%. The company generated $3.5 billion in operating cash flow, up from $1.1 billion in the previous quarter.

In October, Stifel reiterated its Buy rating on Philip Morris International Inc. (NYSE:PM) with a $105 price target. The firm expects the company to show stronger earnings growth as supply chain costs ease and investments in low-risk products increase.

At the end of Q2 2022, 56 hedge funds tracked by Insider Monkey owned stakes in Philip Morris International Inc. (NYSE:PM), compared with 55 in the previous quarter. These stakes hold a combined value of $6.8 billion. Fundsmith LLP was one of the company’s most prominent shareholders in Q2.

Artisan Partners mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2022 investor letter. Here is what the firm has to say:

“On the positive side of the ledger, our top contributor was Swedish Match, a Swedish tobacco and nicotine products maker. The company received an all-cash takeover offer from rival Philip Morris International Inc. (NYSE:PM), which we also held in the portfolio, for SEK 106 per share—a 35% premium to Swedish Match’s prior closing share price. The deal is a good fit for PM as it reduces PM’s dependence on cigarettes—a category in steady decline—and accelerates the company’s transition to smokeless “reduced-risk” products (RRPs)—a category that has experienced rapid growth over the past five years. PM can also leverage its global scale to generate significant revenue synergies from these complementary product sets, as well as quickly gain access to the US market—the world’s largest market for RRPs and one where regulators have embraced RRPs and other less harmful nicotine products. We exited our position in Swedish Match as shares approached the takeout price.”

You can also take a look at 10 Dividend Stocks That Are Too Cheap To Ignore and 10 Monthly Dividend Stocks with Over 4% Yield

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