The AI narrative is fueling stock market surge, with Philip Morris International and British American Tobacco.

From Nasdaq: 2024-08-24 03:39:00

The AI narrative is fueling the stock market surge, with Nvidia becoming one of the largest companies globally. Despite the market’s high P/E ratio, some overlooked stocks like Philip Morris International and British American Tobacco offer high dividend yields and growth potential, potentially outperforming the S&P 500 in the coming years.

Philip Morris International, known for tobacco brands like Marlboro, is expanding into new-age nicotine products like Iqos and Zyn. With projected earnings growth of 11-13%, the company aims to compound earnings by over 10% annually for the next decade. Trading at a 4.4% dividend yield, the stock offers potential for strong returns.

British American Tobacco, with well-known brands like Camel, faces challenges in declining combustibles volume but compensates with price increases. The company’s “new categories” segment is growing rapidly, poised to boost earnings despite cigarette volume declines. With an 8.1% dividend yield, British American Tobacco aims to outperform the S&P 500 in the next ten years.

Consider investing in Philip Morris International – a stock with high growth potential. The Motley Fool’s Stock Advisor team recommends other stocks for potential high returns. Stock Advisor has outperformed the S&P 500 since 2002, offering guidance on building a successful portfolio. Investing early in recommended stocks like Nvidia could result in significant returns over time.



Read more at Nasdaq: Prediction: These 2 Dividend-Paying Stocks Will Outperform the Market This Decade