Group 1 - The article discusses the author's enjoyment in researching British American Tobacco (NYSE: BTI) as a significant investment holding [1] - The author emphasizes a value investing approach, focusing on undervalued companies with a strong margin of safety and attractive dividend yields [1] - The author highlights a preference for companies with a solid earnings track record trading at less than 8 times free cash flow, which reflects a specific investment strategy [1] Group 2 - The author has a beneficial long position in British American Tobacco shares, indicating a personal investment interest [2] - The article expresses the author's own opinions without external compensation, suggesting an independent analysis [2] - There is no business relationship with any company mentioned, reinforcing the objectivity of the analysis [2]

The stock emerged from a disastrous decade and could now outperform the market moving forward.Tobacco stocks aren't for everyone. The fact that they deal in vices and sell addictive products is off-putting to some, while others skip over them in favor of faster-growing businesses. British American Tobacco (BTI 0.52%) is one of the industry's most prominent players, boasting a global presence and a diverse portfolio of cigarette brands and smoke-free nicotine products.The stock's nearly 7% dividend yield off ...

The fight for the US nicotine market is heating up. Incumbent MO has been stumbling on their non-combustible strategy, with little to show other than how not to transform a business. On the other end of the spectrum, Philip Morris, until recently out of theStriving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analy ...

Holding shares of strong companies that pay consistent dividends can help you preserve and grow your savings. Three Motley Fool contributors recently selected their favorite high-yield dividend stocks to buy now. These businesses have a long record of paying dividends and currently offer yields well above the S&P 500 average of 1.45%. Here's why they think Target (TGT 2.93%), General Mills (GIS 1.86%), and British American Tobacco (BTI 1.20%) could pay you passive income forever.A Dividend King with a high ...

Realty Income is one of the world's largest real estate investment trusts (REITs). It consistently buys new properties, rents them out, and splits the rental income with its investors. It owns about 15,600 properties worldwide, and its top tenants include Dollar General, Dollar Tree, Walgreens, and Seven & I Holdings Co.'s 7-Eleven. Realty Income As a REIT, it needs to pay out at least 90% of its pretax profit to maintain a favorable tax rate. It pays monthly dividends, it's raised its payout 130 times sinc ...

Group 1 - Manika is a macroeconomist with over 20 years of experience in investment management, stock broking, and investment banking [1] - Manika runs the profile Long Term Tips (LTT), focusing on generational opportunities in the green economy [1] - The investing group Green Growth Giants takes a deeper dive into opportunities presented by the green economy segment [1]

British American Tobacco p.l.c. (NYSE: BTI ) is an international tobacco company that manufactures and sells tobacco products around the world. They have a strong portfolio of products that includes Vapor products, Heated products, Modern Oral products, Traditional Tobacco products, andI believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (Chemical Engineering, University of California, Santa Barbara) in model predictive control and an MBA (Jones Scho ...

Group 1: Company Overview - British American Tobacco primarily operates as a tobacco company, with approximately 80% of its revenue derived from combustible tobacco products, predominantly cigarettes, which account for about 97% of the volume sold [2] - The addictive nature of nicotine allows British American Tobacco to maintain a steady consumer base, despite the classification of tobacco as a non-essential consumer staple [3] Group 2: Financial Performance - The company offers a high dividend yield of 7.1%, significantly above the broader market average of 1.2% and the consumer staples average of 2.6%, indicating potential risks associated with the investment [1] - In 2024, British American Tobacco's adjusted earnings payout ratio was approximately 66%, suggesting that the dividend is likely to remain safe in the near term [4] Group 3: Market Challenges - British American Tobacco faces a long-term decline in cigarette volumes, with a 5% drop in 2024, following declines of 5.3% in 2023 and 5.1% in 2022 [5] - The U.S. cigarette business experienced a significant volume decline of 10.1% in 2024, mirroring the struggles faced by Altria, which saw a 10.2% decline [6] Group 4: Strategic Considerations - Both British American Tobacco and Altria are attempting to offset volume declines through price increases, but this strategy may not be sustainable in the long run [7] - Investors should closely monitor volume trends in the U.S. market, as continued declines could signal deeper issues, especially if these trends affect the company's international operations [8][9] Group 5: Long-term Outlook - While the dividend appears secure for now, the ongoing decline in the U.S. market poses significant long-term risks, potentially impacting the company's ability to sustain its dividend [10]

Group 1 - The article emphasizes a dividend-focused value investment strategy that prioritizes capital preservation and steady income growth [1] - The investment approach involves holding high-quality value stocks that provide meaningful growth and long-term safety [1] - The author encourages engagement through direct messaging and social media to share insights on financial independence [1] Group 2 - The author has disclosed a beneficial long position in several stocks, indicating a personal investment strategy [2] - The article is presented as a personal opinion and does not involve compensation from companies mentioned [2] - The author clarifies that the content is for informational purposes and does not constitute investment or tax advice [3]

Group 1: Company Overview - British American Tobacco generates approximately 80% of its revenue from combustible products, with cigarettes accounting for 97% of the volume sold [2] - The company is facing a long-term decline in cigarette volumes, which fell by 5% in 2024, following decreases of 5.3% in 2023 and 5.1% in 2022 [4] Group 2: Industry Trends - The number of individuals using only combustible nicotine products in the U.S. has decreased from 34 million in 2019 to 28 million by the end of 2024, indicating a broader trend affecting the cigarette industry [3] - British American Tobacco is attempting to diversify its product offerings by investing in "new categories" such as vaping products, heated products, and pouches, which currently contribute nearly 20% of revenue [5] Group 3: Financial Performance - In 2024, British American Tobacco paid out more in dividends than it earned, resulting in a dividend payout ratio exceeding 100%. However, the adjusted earnings payout ratio stands at 66% [6][7] - The dividend consumed around two-thirds of the company's cash flow in 2024, suggesting that the dividend is sustainable for the time being [7] Group 4: Future Outlook - The new categories are expected to play a crucial role in offsetting declines in the core cigarette business, but they currently contribute only 2% of the company's profit from operations [8] - While the dividend is secure for now, the company faces a long-term challenge in transitioning away from cigarettes, and failure to successfully grow its non-combustible businesses could jeopardize the dividend in the future [9][10]