Need investment income? Dividend stocks are obviously your best bet.
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%.
Inflation erodes purchasing power, and retirees must maintain their lifestyle during their golden years. We emphasize deep diversification and reinvesting a portion of collected dividends to combat inflation and ensure growing income for a secure retirement. We discuss our top picks with up to 10% yields.
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.
The market's recent volatility highlights the irrationality of short-term movements, making high-yield dividend aristocrats attractive for stable, long-term returns. High-yield aristocrats offer an average yield of 5.3%, significantly higher than the S&P and other high-yield ETFs. They also have solid growth prospects. These top 10 aristocrats are undervalued by 18%, providing a 29% upside potential within 12 months and 11.9% CAGR long-term returns.
The market appears expensive, but focusing on stocks with stable growth and a reasonable valuation, like British American Tobacco, should mitigate risks. BTI's diverse product portfolio, including combustibles, oral products, heated tobacco, and vapes, positions it well despite the decline in traditional smoking. BTI aims to become a fully smokeless company by 2035, leveraging growth in non-combustible nicotine products to sustain financial performance.
British American Tobacco offers an 8% dividend yield with a conservative 60% payout ratio, ensuring stable and growing dividends for investors. Despite a 12% stock price decline over five years, BAT's dividends have provided inflation-beating returns, making it a reliable income investment. BAT's strategic debt reduction and share buybacks enhance shareholder value, contributing to expected EPS growth of 6-7% annually.