BTAFF - Complete Devastation Massive Income With British American Tobacco
2024-01-29 06:09:13 ET
Summary
- British American Tobacco shares have been absolutely crushed since early 2022, leaving investors devastated with paper losses.
- Many challenges including regulatory pressures and debt burdens persist, but these factors are already priced into the stock.
- BTI is transitioning to smokeless products and expects revenue and profit growth in the coming years.
- Collect massive income, and buy before rates are cut and we see a flood of money into income-producing names.
Our investing approach is one that blends growth, income, and value, along with targeted trading in beaten-down names primed for a rebound. Sometimes, a high-yield is a red flag. Other times, quality companies can be in an unfavored sector, and see their stocks get creamed, driving a sustainable dividend-paying company into the high-yield range. We focus on finding the best income names to round out our trading, ones where we can collect a solid dividend while we also wait for a turnaround in share prices. We believe British American Tobacco ( BTI ) fits the bill. We began buying in the low $30s, scaling into an income position on the way down. In the short-term, a few months to a few quarters, we do not stress about price action. Think about it like a rental property you might own, collecting rental income. Do you get the house appraised every week? Of course not, so it should be with a name you buy for income and capital appreciation. Quarterly is fine, checking in on the 10-Qs, and changes to holdings and/or the regulatory environment....
Complete Devastation, Massive Income With British American Tobacco