5 Safe Dividend Stocks to Quit Your 9 to 5 Job

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

Number of Hedge Fund Holders: 47

Dividend Yield: 7.4%

Altria Group, Inc. (NYSE:MO), a tobacco company, and among the largest sellers of cigarettes and related products, is next on our list of safe dividend stocks to quit your 9 to 5 job. The company ranks 3rd.

This September, BofA reiterated a Buy rating on shares of Altria Group, Inc. (NYSE:MO).

By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE:MO) worth roughly $948 million.

Broyhill Asset Management, an investment management firm, mentioned Altria Group, Inc. (NYSE:MO) in its second-quarter 2021 investor letter. Here’s what they said:

“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.”