In this article, we discuss 5 best long-term dividend stocks with over 4% yield. If you want to see some more stocks from this list, click 10 Best Long-Term Dividend Stocks with Over 4% Yield.
5. Philip Morris International Inc. (NYSE:PM)
Dividend Yield as of April 4: 5.22%
Number of Years of Consecutive Dividend Increases: 14
Number of Hedge Fund Holders: 47
Philip Morris International Inc. (NYSE:PM) is a Swiss-American multinational tobacco company that sells cigarettes, vapor, and smoke-free products. Philip Morris International Inc. (NYSE:PM) has been consecutively increasing its dividends for 14 years, and the 5.22% dividend yield tops the industry average of 1.89%.
On March 10, Philip Morris International Inc. (NYSE:PM) declared a quarterly per share dividend of $1.25, in line with previous. The dividend will be distributed on April 12, for shareholders of record on March 24.
Stifel analyst Christopher Growe on March 25 maintained a Buy recommendation on Philip Morris International Inc. (NYSE:PM) but lowered the price target on the shares to $105 from $115. The rating and price target was in light of Philip Morris International Inc. (NYSE:PM) announcing its exit from the Russian market amid the war.
According to Insider Monkey’s Q4 data, Terry Smith’s Fundsmith LLP is the largest shareholder of Philip Morris International Inc. (NYSE:PM), with 20.4 million shares worth $1.94 billion. Overall, 47 hedge funds were bullish on the stock at the end of December 2021.
Broyhill Asset Management mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2021 investor letter. Here is what the firm had to say:
“Philip Morris (PM) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 23%. We shared our thoughts on these regulations during the quarter, which are available here.
‘PM Valuation. PM is up ~ 15% YTD and would have the most to gain under a nicotine cap. A cap would likely accelerate conversion to iQOS, which is 100% incremental for PM (PM also has zero exposure to combustible cigarettes in the U.S. and licenses its IQOS product for MO to distribute domestically). As such, the decline in PM was much more muted, with the stock hitting new 52 week highs a day after the Biden headline, driven by yesterday’s earnings release. It didn’t take long for investors to shift their attention back to fundamentals and the fundamentals here are best in class. In short, results beat estimates across the board (a recurring theme here), and management raised guidance for the full year (another recurring theme). IQOS continued to deliver impressive growth, recording continued market share gains on the heels of continued user acquisition growth, up 1.5M to 19.1M total users. Importantly, IQOS now represents nearly 30% of PM net revenues (management expects “smoke-free” products to represent more than half of their business by 2025, which should make the ESG folks happy), which is driving top-line growth and margin expansion. Hard to believe that they have created a product with higher margins than combustible cigarettes!! We expect PM operating margins to increase by 100bps – 200bps annually as IQOS continues to gain share. The stock trades at ~ 15x today or 2/3 of the market’s multiple for a business likely to generate $35B in cash flow – or 25% of the market cap – in just the next three years. Over the last decade, shares have traded at an average multiple of 18x and within a range of ~ 14x – 22x (+/-1 standard deviation). The stock yields 5.1% at the current price, and we expect management to resume share purchases in the back half of this year.’”
