Rajiv Jain’s GQG Partners Portfolio: 5 Dividend Stock Picks

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

Number of Hedge Fund Holders: 39
GQG Partners’ Stake Value: $434,956,000
Dividend Yield as of March 14: 7.13%

Altria Group, Inc. (NYSE:MO), a London-based tobacco company, pays a quarterly dividend of $0.90 per share, with a dividend yield of 7.13%, as recorded on March 14. In the past 52 years, the company has raised its dividend 56 times. This January, JPMorgan raised its price target on Altria Group, Inc. (NYSE:MO) to $51, while keeping an ‘Equal Weight’ rating on the shares.

In Q4 2021, GQG Partners increased its position in the company by 47,902%, building a stake worth $435 million. The company represented 1.07% of Rajiv Jain’s portfolio. As of the end of Q4, 39 hedge funds tracked by Insider Monkey reported owning stakes in Altria Group, Inc. (NYSE:MO), down from 45 in the previous quarter. Those stakes held a consolidated value of over $1.05 billion.

Broyhill Asset Management also mentioned Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter. Here is what the firm had to say:

“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.”

You can also take a look at 10 Dividend Stocks With the Potential to Grow and 10 Dividend Stocks That Have Doubled Their Payouts

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