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Investor Insights

This summary was created by AI, based on 7 opinions in the last 12 months.

The experts have mixed opinions about British American Tobacco (BTI-N). Some believe that the company's high dividend yield of around 9.5% makes it an attractive option for dividend-oriented investors, while others are cautious due to the negative ESG overhang in the tobacco sector. However, all experts agree that the company is transitioning away from burning cigarettes and is developing innovative products to increase demand. The stock has underperformed in the past, but its high free cash flow and dividends make it an appealing option for some investors.

Consensus
Mixed
Valuation
Fair Value
BUY

Pays a 9.5% dividend, so over 10 years, you've returned 95% of your capital, assuming no dividend cut. But there is a huge ESG overhang in this sector; everybody hates tobacco stocks. Debt is paid down and the balance sheet is fine, so there's no real risk. The company is transitioning away from burning cigarettes.

tobacco
HOLD

Not a "loved" company from a ESG perspective. Question is whether 10% divided yield is sustainable (thinks that it is). Debt levels ok. Believes company will perform well over the long term. Good for dividend oriented investors (good bond proxy). Owns shares and will continue to hold. 

tobacco
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

If you can get around buying into big tobacco, this is a dividend aristocrat.  It pays an excellent dividend, backed by a payout ratio under 50% of cash flow.  The company is developing innovative products to increase demand.  Cash reserves are growing, it trades at 7x earnings and under book value.  We recommend setting a stop-loss at $27, looking to achieve $42.50 -- upside potential of 34%.  Yield 7.1%  

(Analysts’ price target is $42.78)
tobacco
PARTIAL BUY

Share price has under performed the past 10 years. 9% yield very attractive. Good for foreign income investors. Does not invest in sector due to growth prospects. 

tobacco
WEAK BUY

Tobacco has done well in the past. These companies boast high free cash flow and dividends. Their sector has been consolidating. You can own this for the yield. He doesn't look at tobacco companies, because of the environment we're in. At current levels, it's not bad to own.

tobacco
TOP PICK

A clear mean-reversion trade. Historically, it traded between 4.4-6.8. With its 9% yield, you only have to wait 8 years, and then every dollar earned is playing with the house's money. In a recession, income is a scarce commodity. Probably a buyback next year. Transitioning to consumables. You may not like its product, but it's good downside protection. Yield is 9.14%.

(Analysts’ price target is $44.94)
tobacco
WEAK BUY

Big dividend payer and big free cashflow. Declining used of tobacco in the developed world, less so elsewhere. Hard to get excited about it, but he acknowledges the big dividend if you want it. Yield is almost 9%.

tobacco
PAST TOP PICK

(A Top Pick May 20/22, Down 12%)

Good debt levels. Pays an 8% dividend yield, so over 5 years you will collect 40%. If you've owned this for 10-15 years, you've done very well.

tobacco
COMMENT
It is well managed but most investors don't want to hold a 'sin' stock.
tobacco
BUY
Last year they started buying back shares. It has some growth and is considered defensive. Attractive PE, but faces a compression from its historically high 8% dividend. Clients have objected to tobacco stocks.
tobacco
TOP PICK
Many investors unwillingly to buy tobacco companies - presenting opportunity. Slow growing dividend very attractive. Balance sheet has recently been cleaned up. Recently announced 2.5% share buyback.
tobacco
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jan 11/22, Down 0.6%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with BTI has triggered its stop at $40. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 1%, when combined with our previous buy recommendation.
tobacco
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jan 11/22, Up 12.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BTI is progressing well. We now recommend trailing up the stop (from $32) to $40.
tobacco
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly If you are looking for a strong dividend and don't mind owning a sin-based company, then we reiterate BTI as a TOP PICK. The England based manufacturer of well known tobacco brands worldwide trades at a 11x PE and just 1.1x book value. Its growth in earnings (coming from growing users during the pandemic and a business model growing non-combustible product lines) makes it good value here. The company pays a stellar dividend, backed by a payout ratio of under 65% of cash flow and has been using cash reserves to pay down debt. We continue to recommend a $32 stop-loss, looking to achieve a target of $50 -- 24% upside. Yield 7.59% (Analysts’ price target is $49.56)
tobacco
COMMENT
Pays very high dividends. Low growth. Great cashflow, as people are addicted. He has no exposure to the sector. Some investors will avoid these "sin" stocks.
tobacco
Showing 1 to 15 of 35 entries

British American Tobacco(BTI-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 5

Stockchase rating for British American Tobacco is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

British American Tobacco(BTI-N) Frequently Asked Questions

What is British American Tobacco stock symbol?

British American Tobacco is a American stock, trading under the symbol BTI-N on the New York Stock Exchange (BTI). It is usually referred to as NYSE:BTI or BTI-N

Is British American Tobacco a buy or a sell?

In the last year, 5 stock analysts published opinions about BTI-N. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for British American Tobacco.

Is British American Tobacco a good investment or a top pick?

British American Tobacco was recommended as a Top Pick by on . Read the latest stock experts ratings for British American Tobacco.

Why is British American Tobacco stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is British American Tobacco worth watching?

5 stock analysts on Stockchase covered British American Tobacco In the last year. It is a trending stock that is worth watching.

What is British American Tobacco stock price?

On 2024-04-12, British American Tobacco (BTI-N) stock closed at a price of $28.62.