There's a race taking place within British American Tobacco's business, and it will determine the future of the stock and the dividend. British American Tobacco admits there's a big problem Think about that for one second. Making cigarettes is the most important business line at British American Tobacco, a consumer staples company, and it is telling investors that the brands it operates in the world's largest and most important economy are in a terminal decline. To be fair, British American Tobacco operates ...

Stock Covered HOLD 3.31% 5.57% Mohamed Rida ROKI About This Article █ Apr '24 Since my last article's publication, BTI pulled back against the S&P500 a little bit and has only recently started to underperform again. Analyst's rating at publication $29.45 S&P 500 change 35 I've probably been the most bearish Seeking Alpha analyst on British American Tobocco (NYSE: BTAFF) over the past year and a half. But in my last update, I changed my rating to a 'Neutral/Hold' to reflect my view of performance in-line wit ...

Time has shown that the one certainty in the stock market is uncertainty. Regardless of how experienced you are or how many advanced investing tools you have at your disposal, nobody can reliably predict how stock prices will move. 1. Altria Group Altria's stock has struggled quite a bit over the past few years, but 2024 has been a nice (and much-needed) turnaround, partly due to the success of non-tobacco products like NJOY. The biggest concern regarding Altria's business is the decline in smoking among U. ...

If you're a dividend investor, you've probably considered buying some tobacco stocks if you don't already own them. Two of the world's largest, best-known tobacco stocks are Philip Morris International (PM 0.07%) and British American Tobacco (BTI -0.90%). There's a good case for including both in any dividend stock portfolio, especially one focused on high-yield stocks. But if you had to choose between the two, which is the better buy today? Business model: Philip Morris International vs. British American T ...

Core Viewpoint - British American Tobacco (BAT) has underperformed compared to the S&P 500 Consumer Staples Index, with a year-to-date increase of less than 2% against the index's 7.1% rise, and a significant 27% price decline in 2023 [2][3] Financial Performance - BAT's revenue growth for 2023 was in line with guidance, particularly driven by strong performance in new categories, which contributed to operating profits two years ahead of schedule, enhancing the operating margin to 45.7% [3][4] - The share of new categories in revenue increased by 1.8 percentage points to 12.3%, although still trailing behind Philip Morris, which has 39% from smoke-free products [4] Dividend and Valuation - The forward dividend yield is robust at 9.8%, with a current yield of 9.6%, indicating strong returns for investors [5] - The forward non-GAAP price-to-earnings (P/E) ratio stands at 6.6x, significantly lower than its five-year average of 8.7x, making it attractive compared to peers [6] Market Position and Growth Drivers - BAT's vape brand Vuse has improved its market penetration to 41% in key markets, up from 36% in 2023, indicating strong growth potential [7][8] - Velo, BAT's modern oral brand, has also seen an increase in market share, reaching 10.3% in key markets, up from 8.6% in 2023 [8] Regulatory Challenges - The US market, accounting for approximately 44% of BAT's revenue, poses significant challenges, including a 90 basis points decline in Vuse's value share due to the rise of illicit single-use vapes [9][10] - Regulatory actions, such as marketing denial orders from the US FDA, have impacted sales of popular products like Vuse Alto, complicating the transition to non-smokeable products [10] Future Outlook - BAT anticipates growth in new categories to be weighted towards the second half of the year, with expectations of low-single figure organic constant currency revenue growth for the full year [11] - Despite ongoing regulatory challenges, BAT's strong adjusted profit margins and attractive dividend yield support a positive outlook for the stock [11]

These dividend stocks look like great buys. British American Tobacco The Vuse brand of vaping products currently has a global value share of 41.1% in the company's key markets and a 51.5% share in the U.S. The glo brand of tobacco heating products enjoys a 16.8% volume share in key markets, and the Velo brand of modern oral products has a 27% volume share in key markets. The company expects volumes and revenue to accelerate across these businesses in the second half of the year. The company plans to spend 7 ...

Looking for dividend income? Check out British American Tobacco (BTI -0.83%). At its current price and payout, the stock's dividend yields an impressive 9.5%. How much would you need to invest to produce a passive income stream of $1,000 a year? While the use of combustible tobacco is on the decline in several mature markets, including the United States, total tobacco use is still on the rise globally. That's especially true when you factor in smokeless products such as vapes and nicotine pouches -- which t ...

Finding good dividend stocks to buy amid market turbulence is essential in today's investing environment to maximize profits and minimize risks. These seven dividend stocks to buy have performance indicators that lead in a variety of industries. They also provide intriguing prospects fueled by resiliency, creativity and calculated risks. The first and second are industry titans, showing a considerable increase in their users. Both businesses have grown their clientele despite pressure from the competition, ...

British American Tobacco p.l.c. (NYSE:BTI) 2024 First Half Pre-Close Trading Update Conference Call June 4, 2024 3:30 AM ET Company Participants Victoria Buxton - Group Head of Investor Relations Tadeu Marroco - Chief Executive Soraya Benchikh - Chief Financial Officer Conference Call Participants Rashad Kawan - Morgan Stanley Faham Baig - UBS Philip Spain - JPMorgan Rey Wium - SBG Securities Richard Felton - Goldman Sachs Simon Hales - Citi Operator Hello, and welcome to the BAT Pre-Close Trading Update. I ...

British American Tobacco p.l.c. (NYSE:BTI) 2024 First Half Pre-Close Trading Update Conference Call June 4, 2024 3:30 AM ET Company Participants Victoria Buxton - Group Head of Investor Relations Tadeu Marroco - Chief Executive Soraya Benchikh - Chief Financial Officer Conference Call Participants Rashad Kawan - Morgan Stanley Faham Baig - UBS Philip Spain - JPMorgan Rey Wium - SBG Securities Richard Felton - Goldman Sachs Simon Hales - Citi Operator Hello, and welcome to the BAT Pre-Close Trading Update. I ...