BTI - 1 Spectacular Dividend Stock Yielding Close to 10% to Buy for the Second Half of 2024
2024-07-10 07:13:00 ET
The market has soared since the beginning of 2023. The S&P 500 index has posted a total return level of 48% over that time frame, pushing the index's price-to-earnings ( P/E ) ratio of nearly 29.
This is much higher than the long-term market average, with many popular stocks such as Apple , Nvidia , and Microsoft trading at even higher multiples. High earnings ratios likely mean high risks for strong forward returns. You need to be optimistic in order to believe the returns over the next 10 years will look like the last 10 for the S&P 500.
So, what are investors to do with so many stocks looking expensive? I have one dividend stock that looks wildly attractive compared to the market: British American Tobacco (NYSE: BTI) . The company has a dividend yielding close to 10% and a dirt-cheap earnings ratio. Unlike most stocks, the market is extremely pessimistic about the company's prospects right now.
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1 Spectacular Dividend Stock Yielding Close to 10% to Buy for the Second Half of 2024