FORH - British American Tobacco: 6.5% Yield With Significant Long-Term Upside
- BTI is a high margin cash cow that is still too cheap, with a single digit earnings multiple (9.7x).
- Investors should monitor the debt levels, which are a bit elevated. The company has paid back a large chunk of debt over the last 5 years.
- BTI is buying back stock at these cheap valuations, making buybacks very beneficial for existing shareholders.
- Investors get paid a 6.5% dividend to wait for capital appreciation.
- I will be using any dips near $40 to add to my position.
For further details see:
British American Tobacco: 6.5% Yield With Significant Long-Term Upside