SWMAY - British American Tobacco: Solid 2021 Earnings Driven By U.S. Business; 6.5% Dividend Yield
- British American Tobacco stock reached a new 52-week high after 2021 results on Friday. The P/E is 10.2x and the Dividend Yield is 6.5%.
- Group earnings were solid, with EPS rising 6.6% excluding currency. The dividend was raised 1% and £2bn in buybacks were announced.
- U.S. profits grew 9.2% and drove group earnings, after Combustibles price/mix of 13.1%; Vuse contribution profit turned positive.
- However, US nicotine pouches were a failure, and profits were down for a second year in two regions; IQOS is a growing risk in Europe.
- With BAT shares at 3,368.5p, we expect a total return of 51% (12.6% annualized) by 2025 year-end, in just under 4 years. Buy.
For further details see:
British American Tobacco: Solid 2021 Earnings Driven By U.S. Business; 6.5% Dividend Yield