We upgraded British American Tobacco to a 'Strong Buy' in January, and since then, the stock has crushed the market. Despite returning more than 40% YTD, BTI still appears undervalued, trading at 8x EPS with potential to reach 10-12x EPS and $50-60 per share over the medium term. The Company has shown significant growth in smokeless products, with modern oral products like Velo gaining market share - especially outside the U.S.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
International dividend-achiever stocks are gaining traction, with Invesco International Dividend Achievers ETF outperforming the iShares MSCI ACWI ETF since April. British American Tobacco stock is rated a buy due to its high yield, strong cash flow, and modest undervaluation despite recent gains. BTI's growth in next-generation nicotine products and stable EPS outlook support its valuation, even amid competitive and market risks.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Despite a -2% decline in the Dividend Harvesting Portfolio, I remain optimistic and continue to buy into market weakness, expecting long-term growth. Added Ford and increased PIMCO Dynamic Income Fund positions, anticipating benefits from upcoming rate cuts and potential market catalysts. Generated $46.89 in dividend income this week, increasing forward projected annualized dividend income to $1,706.01, aiming for over $1,850 by year-end.
Market volatility has returned, with Nvidia plunging 9.5% in a single day. This highlights the extreme valuations and potential for significant market shifts. While big tech isn't likely a bubble, the growth-to-value rotation could continue, making ultra-high-yield aristocrats red-hot Wall Street darlings. Ultra-yield aristocrats offer attractive valuations and high yields, benefiting from potential rate cuts and market sentiment shifts, making them compelling buys.
The Federal Reserve is set to lower interest rates, and that could help high-yielding stocks. British American Tobacco and Altria Group are two such stocks that pay sky-high dividends.
Here is how British American Tobacco (BTI) and Wolters Kluwer NV (WTKWY) have performed compared to their sector so far this year.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
There are several ways to make money in the stock market, but some are riskier than others.
The S&P 500 is riding high on an AI narrative, leaving other companies behind. High-dividend-yielding stocks can outperform the market over the next 10 years.
British American Tobacco stock has outperformed the S&P 500 since our latest coverage in May, prompting a re-evaluation of its key drivers. Despite an interim pullback in organic revenue, British American Tobacco's overall operating performance, strong cash position, moderate debt burden, and high dividend yield provide positive signs. Growth through its new products segment and Cannabis exposure is likely overlooked and underestimated.