Key Details
Price
$37.90Last Dividend
$0.76Annual ROE
-22.48%Beta
0.27Events Calendar
Next earnings date:
Feb 07, 2025Recent quarterly earnings:
July 25, 2024Recent annual earnings:
Feb 08, 2024Next ex-dividend date:
Dec 20, 2024Recent ex-dividend date:
Sept 27, 2024Next split:
N/ARecent split:
Feb 14, 2017Analyst ratings
Recent major analysts updates
Market Data
Dividend
Profitability
Efficiency
Valuation
Liquidity
Cash Flow
Institutional Ownership
Yields have started to come down within most yield-driven segments. The risk is that we fall back into a yield-starvation era. In my view, income-oriented investors have to be bold and lock in high yields now, while they are still available.
Where Will Ultra-High Yield British American Tobacco Be in 5 Years?
Tobacco industry leaders like PM, MO and BTI are investing heavily in smoke-free products to align with health trends and regulatory shifts. Despite declining cigarette sales, strong pricing power and RRP growth support a sustainable outlook.
Recent developments, especially the updates provided on BTI's recent Capital Market Day, have led us to reexamine the stock. Despite progress in new categories, rapid decline in combustibles and slow growth in new products raise concerns about future profit stagnation. Despite a low FWD P/E of 7.5x, we consider the stock fairly priced given the gloomy growth potential.
With a huge 8.4% dividend yield, British American Tobacco throws off a lot of passive income, but there are risks to consider.
British American Tobacco showed promising new innovations in all three NGP categories on its recent Capital Markets Day. The two-piece Glo Hilo device seems to improve on current consumers' pain points and may be able to compete more effectively against IQOS. The nicotine industry is growing and BTI should be able to grow profits despite trading at a low valuation of less than 8x free cash flow.
Investors are paying too much attention to the rhetoric and not enough attention to actual results.
British American Tobacco has a huge 8.6% yield, which is a pretty enticing figure if you are trying to live off of dividends in retirement.
BTI is expanding in the new categories segment, with a YoY organic sales growth of 7.4% in H1 2024. Regulatory enforcement against illegal vape imports in the US supports BTI's market position. BTI's Vuse holds a 42.1% share in the US e-cigarette market. The company can largely benefit from the growth expected in this market.
The stock market is trading near record highs after a 22% rally that has many investors worried about an imminent correction. Goldman Sachs just predicted a lost decade for stocks, but the market is always and forever a market of stocks, not a stock market. Value stocks soared in the lost decade of the 2000s. Here are five low-volatility dividend aristocrats that will help you sleep well at night in future market corrections.
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