5 Best Non-REIT Dividend Stocks To Buy

In this article, we discuss 5 best non-REIT dividend stocks to buy. If you want to see more stocks in this selection, go see 12 Best Non-REIT Dividend Stocks To Buy. 

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

Number of Hedge Fund Holders: 56

Dividend Yield as of November 4: 5.62%

Philip Morris International Inc. (NYSE:PM) is a New York-based tobacco company that is focusing on developing products outside of the tobacco and nicotine sector. On October 20, Philip Morris International Inc. (NYSE:PM) reported its Q3 results, posting a non-GAAP EPS of $1.53 and a revenue of $8.03 billion, outperforming Wall Street estimates by $0.17 and $730 million, respectively. Philip Morris International Inc. (NYSE:PM) delivered a quarterly dividend per share of $1.27 on October 12. 

On November 2, Morgan Stanley analyst Pamela Kaufman raised the price target on Philip Morris International Inc. (NYSE:PM) to $109 from $102 and kept an Overweight rating on the shares. The analyst expects Philip Morris International Inc. (NYSE:PM) to launch IQOS in the US in spring 2024 and she sees IQOS driving incremental profit in 2027.

According to Insider Monkey’s Q2 data, 56 hedge funds were long Philip Morris International Inc. (NYSE:PM), compared to 55 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 30.4 million shares worth $3 billion. 

Here is what Artisan Partners specifically said about Philip Morris International Inc. (NYSE:PM) in its Q2 2022 investor letter:

“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.”

4. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 58

Dividend Yield as of November 4: 3.64%

Morgan Stanley (NYSE:MS) is an American multinational financial holding company that ​​operates through Institutional Securities, Wealth Management, and Investment Management segments. On October 27, Morgan Stanley (NYSE:MS) declared a $0.775 per share quarterly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record on October 31. 

On October 17, Oppenheimer analyst Chris Kotowski reiterated an Outperform rating on Morgan Stanley (NYSE:MS) but lowered the price target on the shares to $88 from $93. The analyst noted that Morgan Stanley (NYSE:MS) was down 5.1% on earnings day, with results largely in line with his estimates, which were also close to market consensus.

According to Insider Monkey’s data, 58 hedge funds were bullish on Morgan Stanley (NYSE:MS) at the end of June 2022, compared to 61 funds in the last quarter. Boykin Curry’s Eagle Capital Management is the largest stakeholder of the company, with approximately 14 million shares worth over $1 billion. 

Here is what Madison Dividend Income Fund has to say about Morgan Stanley (NYSE:MS) in its Q3 2022 investor letter:

“This quarter we are highlighting Morgan Stanley (MS) as a relative yield example in the Financial sector. MS is a leading investment bank and wealth management firm with approximately $5 trillion of client assets under management. It merged Citigroup’s Smith Barney business into its own wealth management business after the 2008 recession/financial crisis, which resulted in a more stable business model. Recent acquisitions of asset manager Eaton Vance and E-Trade provide additional stability and higher returns on capital. We believe MS has a sustainable competitive advantage due to its size and scale, global reach, strong reputation, and financial distribution capabilities. Importantly for a financial institution, it is in good financial health as key leverage ratios including common equity Tier 1 ratio, Tier 1 capital ratio, Tier 1 leverage ratio, and supplementary leverage ratio were all well above required minimums at the end of 2021.1

Our thesis on MS is that its wealth management business will continue to become a larger part of the overall company, which will increase overall margins and return on equity (ROE). Wealth management and asset management are less cyclical than investment banking, and often generate higher margins and provide better stability of financial results. For example, the addition of Smith Barney added significant scale and boosted wealth management operating margins from below 10% into the mid-20%s over the past several years while also increasing returns on equity. Looking ahead, we believe the company will benefit from rising asset prices and higher interest rates, should they happen over time…” (Click here to see the full text)

3. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 58 

Dividend Yield as of November 4: 3.64%

Gilead Sciences, Inc. (NASDAQ:GILD) is a California-based biopharmaceutical company that discovers, develops, and commercializes medicines for unmet medical needs in the United States, Europe, and internationally. On October 27, Gilead Sciences, Inc. (NASDAQ:GILD) posted a Q3 non-GAAP EPS of $1.90, beating market estimates by $0.47. The revenue of $7.04 billion topped Street consensus by $910 million. The company also raised its full-year 2022 sales outlook. With a dividend yield of 3.64% as of November 4, Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best dividend stocks to consider. 

On October 31, Maxim analyst Jason McCarthy raised the price target on Gilead Sciences, Inc. (NASDAQ:GILD) to $92 from $84 and kept a Buy rating on the shares. The company’s Q3 results were “strong”, supported by its Veklury and HIV franchise, the analyst wrote in a research note. He added that the more significant takeaway from Gilead Sciences, Inc. (NASDAQ:GILD)’s results was the ongoing growth in its oncology platform, with Trodelvy and Yescarta expanding penetration into current indications.

According to Insider Monkey’s second quarter database, 58 hedge funds were long Gilead Sciences, Inc. (NASDAQ:GILD), compared to 68 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with 15.6 million shares worth $968.45 million. 

Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Gilead Sciences, Inc. (NASDAQ:GILD) in its Q4 2021 investor letter:

“Other pharma companies are providing solutions as well. Biopharmaceutical company Gilead Sciences’ remdesivir, sold under the brand name Veklury, is a broad-spectrum antiviral medication administered by intravenous infusion; it can shorten the time to recovery in hospitalized patients and reduce the risk of hospitalization and death in non-hospitalized patients.”

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 59

Dividend Yield as of November 4: 3.08%

Chevron Corporation (NYSE:CVX), the American energy giant, is one of the premier dividend stocks to monitor. The company posted a strong Q3 beat on earnings and revenue, supported by towering natural gas and crude oil prices. On October 26, Chevron Corporation (NYSE:CVX) declared a $1.42 per share quarterly dividend, in line with previous. The dividend is payable on December 12, to shareholders of the company as of November 18. 

On October 31, Cowen analyst Charles Ryhee raised the price target on Chevron Corporation (NYSE:CVX) to $185 from $160 and kept an Outperform rating on the shares. The company reiterated a disciplined approach to M&A and buyback despite an ever improving balance sheet, the analyst noted. 

According to Insider Monkey’s data, 59 hedge funds were long Chevron Corporation (NYSE:CVX) at the end of June 2022, compared to 53 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with 161.4 million shares worth $23.3 billion. 

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 104

Dividend Yield as of November 4: 3.10%

JPMorgan Chase & Co. (NYSE:JPM), an American multinational financial services company, is one of the top dividend stocks to buy. JPMorgan Chase & Co. (NYSE:JPM) posted its Q3 results on October 14, reporting earnings per share of $3.12 and a revenue of $32.72 billion, topping analysts’ estimates by $0.27 and $836.67 million, respectively. 

On October 17, Citi analyst Keith Horowitz reiterated a Buy rating on JPMorgan Chase & Co. (NYSE:JPM) with a $135 price target following the company’s Q3 results. The analyst said the bank is “hitting on all cylinders” and that present share levels offer an “excellent entry point” for a “quality franchise”.

According to Insider Monkey’s data, 104 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM) at the end of June 2022, compared to 110 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with nearly 8 million shares worth $900 million. 

Here is what Vltava Fund has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2022 investor letter:

“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.

JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.

A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”

You can also take a look at 12 Best Food Dividend Stocks To Buy and 10 Best Small Cap Stocks To Buy Now. 

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