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Is Philip Morris International Inc. (NYSE:PM) the Top Dividend Stock to Buy in 2024 According to Billionaire Paul Tudor Jones?

We recently published a list of Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones. Since Philip Morris International Inc. (NYSE:PM) ranks 5th in the list, it deserves a deeper look.

Billionaire Paul Tudor Jones recently made headlines  after he participated in the Robin Hood foundation’s fundraising event dressed as Neo from the movie “The Matrix.” The event raised $68.5 million. The billionaire, who founded Tudor Investment Corporation in 1980, couldn’t help himself but talk about investing during the event, and highlighted the importance of “Warren Buffett-style compounding.”

“Somewhere, somehow the multiplicative power of compound put you in this seat,” Tudor Jones said.

Paul Tudor Jones’ Recession Prediction

During an interview last year, the billionaire had predicted that a recession was expected to start in the first quarter of 2024. He said at the time that the US was in its “weakest position” since World War II. However, the market rally fueled by AI proved the prediction wrong. Earlier this year,  Jones said in another interview that the financial markets represent people’s ideas and what they make of the economic situation. Paul Tudor Jones said that there’s a chance the stock market would be “here or lower” in the next five to ten years. However, the billionaire also said it’s possible that the markets would go higher from here if the next President of the US devises a better “policy response” next year.

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He’s been vocal about AI lately and sharing his thoughts about the impact of technology on our society. He thinks AI could be the “knight on the horse that rides and saves us.”

But AI-related threats worry Paul Tudor Jones.  In an interview in January he referred to a survey where close to 3,000 AI experts were asked whether they believe AI would end humanity. According to Jones, a whopping 58% of the experts said yes. The billionaire said US policymakers will have to decide how to tackle this problem. Jones believes AI is growing at an “unbridled pace” since there’s so much money to be made in the domain but the biggest problem for policymakers would be to balance the benefits and threats of AI to make it sustainable.

For this article we scanned billionaire Paul Tudor Jones’ Q1 portfolio and chose his top dividend stock picks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Philip Morris International Inc. (NYSE:PM) the Top Dividend Stock to Buy in 2024 According to Billionaire Paul Tudor Jones?
Is Philip Morris International Inc. (NYSE:PM) the Top Dividend Stock to Buy in 2024 According to Billionaire Paul Tudor Jones?

Philip Morris International Inc. (NYSE:PM)

Billionaire Paul Tudor Jones Q1’2024 Stake: $46,955,616

Billionaire Paul Tudor Jones increased his stake in tobacco giant Philip Morris International Inc. (NYSE:PM) by 474% in the first quarter of 2024, ending the quarter with a $47 million stake. Philip Morris International Inc. (NYSE:PM) has increased its dividend every year since 2008. Philip Morris International Inc. (NYSE:PM) is one of the high-yield dividend stocks in billionaire Tudor Jones portfolio since the stock’s dividend yield stands at over 5%. Philip Morris International Inc. (NYSE:PM) was able to increase its Q1 revenue by 3.5% on a YoY basis despite headwinds in the traditional smoking product segments as Americans leave combustible tobacco products for smoke-free products. Analysts believe Philip Morris International Inc. (NYSE:PM) is making a smooth transition, thanks to its smoke-free product category led by IQOS and VEEV vapes. PM ranks 5th on our list of the best dividend stocks to buy in 2024 according to Paul Tudor Jones.

According to data from Yahoo Finance, Wall Street’s one-year average analyst price target for Philip Morris International Inc. (NYSE:PM) is $109.52, which presents an upside potential of 8%. Based on Philip Morris International Inc. (NYSE:PM) 2024 EPS estimate of $6.9 (according to Yahoo Finance), its forward P/E ratio is around 14.7, much lower than the sector median of 17.

Overall, Philip Morris International Inc. (NYSE:PM) ranks 5th in Insider Monkey’s list of Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones. You can visit Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones to see other stock picks of Billionaire Paul Tudor Jones. While we acknowledge the potential of Philip Morris International Inc. (NYSE:PM), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Philip Morris International Inc. (NYSE:PM) but that trades at less than 5 times its earnings, check out our report about the  cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published at Insider Monkey.