British American Tobacco with an 8.68 P/FCF and 7.56% dividend yield remains the largest blue-chip bargain in today's highly priced margins. The recently released Velo Plus in the US achieved outstanding user feedback and could help accelerate NGP growth going forward and be a catalyst for higher valuations. Given the low valuation and defensive characteristics of the underlying business, BTI might act as a hedge against coming market turmoil. The high dividend yield could further limit the potential downside.
Philip Morris is currently overvalued at 23x earnings, making it less attractive compared to its peers like British American Tobacco. PM excels in heated tobacco with its IQOS but faces slowing growth rates, rising competition, and potential tax increases. Despite strong performance in smokefree products, PM's valuation gap with British American Tobacco is unjustified, even if we expect double-digit growth rates for PM going forward.
British American Tobacco (BTI 1.84%) is one of the world's largest cigarette makers. That places the company in the consumer staples sector, since cigarette smokers tend to keep buying cigarettes no matter what the economic environment looks like.
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High dividend yields are a double-edged sword. On the one hand, you can get a sizable amount of cash back from these investments each year.
British American Tobacco p.l.c.'s Q4 and FY 2024 earnings report indicates slow growth ahead due to various headwinds. But its total shareholder yield still makes it a solid hold. The stock's current dividend yield is about 7.8%.
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British American Tobacco is my largest stock investment that lies outside the traditional income areas such as BDCs, REITs, and midstream players. After the full 2024 report, BTI has dropped by ~10%. As a result of this, the P/CF has decreased accordingly, reaching 6.6x. The yield has bounced back to ~7.7%.
British American Tobacco's recent 10% drop presents a potential buying opportunity. Historical data shows 33% 12-month forward returns after such crashes. Despite negative headline growth, BTI's adjusted revenue grew 1.3% in 2024, and management remains confident in long-term growth targets of 3-5% sales and 4-6% EPS. BTI's current 8X PE ratio is historically undervalued, offering an attractive entry point for investors seeking long-term returns and a high yield near 8%.
British American Tobacco (BTI -7.32%) stock got hit with a big sell-off Thursday. The tobacco giant's share price closed out the day down 7.3%, despite gains of 1.04% for the S&P 500 index in the daily session.
British American Tobacco p.l.c. (NYSE:BTI ) Q4 2024 Earnings Conference Call February 13, 2025 4:30 AM ET Company Participants Tadeu Marroco - CEO Soraya Benchikh - CFO Victoria Buxton - Group Head of IR Conference Call Participants Faham Baig - UBS Rashad Kawan - Morgan Stanley Gaurav Jain - Barclays Rey Wium - Anchor SB Damian McNeela - Deutsche Numis Richard Felton - Goldman Sachs Tadeu Marroco Good morning, everyone.
British American Tobacco p.l.c.'s FY 2024 results showed resilience in revenue growth despite challenges, with a 1.30% increase to £27.20 billion, driven by Total Smokeless. The tobacco market faces headwinds in 2025, notably from increased taxes in Bangladesh and Australia, impacting BTI's adjusted profit from operations by -2%. New Categories, especially Modern Oral, showed strong growth, but Vapour's potential is hindered by illicit trade, affecting BTI's future prospects.