Well, I'm here to pound the table and let you know that British American stock isn't just one of the best dividend deals on Wall Street today. In fact, I recently bought a lot more BTI after it "disappointed" Wall Street by announcing the temporary suspension of its buyback program. I'm talking about world-beater blue-chips, including dividend aristocrats like British American Tobacco p.l.c. history, table-pounding Warren Buffett-style "fat pitches" are still available. Well, we've seen stocks rally 20% off those lows, and some of the most beaten-down names are up 30%, 40%, or more.īut guess what? Even with the market off to its 8th-best start to the year in U.S. Stocks were down 28%, the Nasdaq ( COMP.IND ) was down 35%, and many of Wall Street's favorite blue-chips were down 50% to 80%.īear markets are a great time to buy the world's greatest companies right before a face-ripping rally. On October 13th, 2022, the S&P 500 ( SP500) hits its bottom in this bear market (so far). Learn More »Ī video version of this article was published on Dividend Kings on Tuesday, February 14th, 2023. Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios.Long-term, its 16.5% return potential is the highest in its industry and better than any ETF, including the Nasdaq. British American Tobacco is a potentially an ultra-value, Buffett-style, "fat pitch" buy with a 75% upside to fair value, could double in 3 years and deliver almost 250% returns within five years.The last time BTI was 40% undervalued, it soared 3000% in 17 years. British American Tobacco stock is trading at 7.9X earnings, pricing in -1.2% growth, and trading at the lowest P/E in 20 years.Management is reducing leverage even more to 2.5 debt/EBITDA, guiding for 5% growth this year and 8% long-term.British American Tobacco's 2022 results were very strong, with modest volume declines, incredible pricing power, and 37% growth in reduced-risk products. It's a global aristocrat with the lowest payout ratio in its industry. just raised its dividend for the 23rd consecutive year (at least).
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