2024-07-26 00:51:49 ET
Summary
- British American Tobacco (BTI) remains fundamentally sound with a depressed multiple and double digit dividend yield.
- Recent earnings figures confirm BTI's durable cash generation profile.
- BTI expects to progressively improve revenue and profit growth by 2026, with potential positive macroeconomic trends ahead that could produce better results than expected.
- Given the P/CF multiple of 5.3x and a dividend yield ~ 11%, BTI offers, in my opinion, one of the best dividend plays in the market.
About a month ago, I issued a very bullish article on British American Tobacco (NYSE: BTI ) , which is also one of my largest positions in the portfolio. While before the recent article I had already circulated a bull thesis on BTI, it just made sense to provide an updated view on the stock given the stagnating returns and a significant underperformance relative to its closest peers Altria Group, Inc. ( MO ) and Philip Morris International Inc. (NYSE: PM )....
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British American Tobacco: A Strong Message From The King