Recent earnings and dividend updates have made Altria Group, Inc. an even strong dividend stock than British American Tobacco p.l.c. MO and BTI both declared similar dividend growth rates (~3.9% YOY), reflecting growth pressure. But both stocks offer plenty of positives (e.g., yield, value, profitability, etc.) to more than counterbalance the growth issue.
BT share price rose modestly after the company published mixed financial results. It jumped by over 2.7%, reaching a high of 185p, its highest level in over a week.
British American Tobacco (BTI) no longer offers compelling long-term growth, prompting a full exit after strong capital gains. BTI's New Categories segment underperformed expectations, widening the gap with Philip Morris (PM), which leads in smokeless products innovation. BTI's capital allocation choices, such as increased buybacks over growth investment, signal short-term focus and limit organ...
Based on the earnings outlook and tax rate projection from its 2025 interim report, British American Tobacco now resembles an equity bond yielding ~12%. To make it more attractive, I also see significant coupon growth potential in the years to come. My growth rate projection is ~5% annually (vs. 6%+ from consensus) based on its strong ROCE and capital allocation flexibility.
This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 3.56%, ...
BTI remains attractively valued, despite a recent 80% rally off 2024 lows and a modest pullback. Shares offer a 6.1% dividend yield, supported by strong free cash flow. glo Hilo rollout accelerates, with premium pricing and early data in Japan and Poland. Velo Plus gains momentum in the U.S. nicotine pouch market, with over 17% market share, challenging the market leader ZYN.
British American Tobacco is downgraded to a "Hold" after a 46% return, with shares now near fair value. BTI's U.S. operations delivered strong results, offsetting overseas weakness, and management guides toward the upper end of 2025 revenue growth. Valuation justifies a modest P/E premium, but technicals suggest a potential pullback to the $48-$49 range could offer a compelling entry point.
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