2024-02-11 07:41:27 ET
Summary
- British American Tobacco offers a dividend yield of over 9%, attracting yield-seeking and value investors.
- The market is aggressively discounting BTI's future cash flows due to challenges in the cigarette market, optically high debt levels, and negative adjustments in the goodwill.
- Most of these concerns are not fully justified and with the most recent earnings dynamics in mind, there is a solid ground to go long BTI.
- In this article I outline the key bear arguments and provide a reasoning why despite these challenges BTI is a clear buy.
British American Tobacco (BTI) is a well-known dividend stock with a market cap of over $69 billion. Currently, BTI yields just above 9%, which stimulates a high interest from many yield-seeking and value investors....
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For further details see:
British American Tobacco: Demystifying The Stability Of 9% Dividend