Some of the market’s best opportunities can still be found in dividend stocks.
After all, companies with strong cash flows and attractive yields tend to outperform even the worst of markets. Look at Phillip Morris (PM), for example. The stock carries a yield of 5.21% and is currently oversold. Better, UBS just upgraded the stock to a buy with a $116 target.
As noted by Street Insider, “Over 2022-2026, UBS expects PMI to generate a 7.6% organic growth CAGR, with smoke free reaching 45% of group sales by 2025. Given the structural long-term resilience of cigarette sales, the material upside to sales and profits from IQOS, SWMA, and its defense of its share leadership in heated tobacco, UBS views PMI as best placed among its peers.”