Core Viewpoint - The stock market in 2025 has shifted towards value stocks, with British American Tobacco (BTI) showing resilience and a year-to-date increase of 17% in U.S. dollar terms, outperforming broader market indices [1][2]. Financial Performance - British American Tobacco offers a dividend yield of 7%, significantly higher than the market average, with potential for continued growth in dividend payouts [2]. - The company has maintained healthy free cash flow generation, exceeding $10 billion annually since 2020, with $11.9 billion generated last year and an expected cumulative free cash flow of $67 billion from 2024 to 2030 [4][5]. Market Dynamics - Despite a 5% decline in global cigarette volumes in 2024, British American Tobacco's combustibles segment reported flat organic revenue when adjusted for currency movements, indicating resilience in earnings [4]. - The company is investing in alternative nicotine products, such as pouches and vaping, to adapt to changing market conditions, with nicotine pouches generating around $6 billion in revenue last year [6][7]. Growth Opportunities - The smokeless segment has grown significantly, contributing billions in revenue annually, which is expected to offset declines in cigarette volumes and support free cash flow [8]. - The Vuse brand faces competitive pressure from illicit disposable vaping devices, but potential regulatory crackdowns could facilitate a return to growth for Vuse [7]. Capital Management - British American Tobacco has utilized its free cash flow to pay down debt and engage in share repurchases, reducing shares outstanding by 3.4% over the last four years, which aids in growing the dividend per share [11]. - The company is positioned to sustainably grow its dividend per share due to ample free cash flow accumulation [10][11].

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of STWD, PFE, ...

Group 1 - The article discusses the author's enjoyment in researching British American Tobacco (NYSE: BTI) as a significant investment holding [1] - The author emphasizes a value investing approach, focusing on undervalued companies with a strong margin of safety and attractive dividend yields [1] - The author highlights a preference for companies with a solid earnings track record trading at less than 8 times free cash flow, which reflects a specific investment strategy [1] Group 2 - The author has a beneficial long position in British American Tobacco shares, indicating a personal investment interest [2] - The article expresses the author's own opinions without external compensation, suggesting an independent analysis [2] - There is no business relationship with any company mentioned, reinforcing the objectivity of the analysis [2]

The stock emerged from a disastrous decade and could now outperform the market moving forward.Tobacco stocks aren't for everyone. The fact that they deal in vices and sell addictive products is off-putting to some, while others skip over them in favor of faster-growing businesses. British American Tobacco (BTI 0.52%) is one of the industry's most prominent players, boasting a global presence and a diverse portfolio of cigarette brands and smoke-free nicotine products.The stock's nearly 7% dividend yield off ...

The fight for the US nicotine market is heating up. Incumbent MO has been stumbling on their non-combustible strategy, with little to show other than how not to transform a business. On the other end of the spectrum, Philip Morris, until recently out of theStriving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analy ...

Holding shares of strong companies that pay consistent dividends can help you preserve and grow your savings. Three Motley Fool contributors recently selected their favorite high-yield dividend stocks to buy now. These businesses have a long record of paying dividends and currently offer yields well above the S&P 500 average of 1.45%. Here's why they think Target (TGT 2.93%), General Mills (GIS 1.86%), and British American Tobacco (BTI 1.20%) could pay you passive income forever.A Dividend King with a high ...

Realty Income is one of the world's largest real estate investment trusts (REITs). It consistently buys new properties, rents them out, and splits the rental income with its investors. It owns about 15,600 properties worldwide, and its top tenants include Dollar General, Dollar Tree, Walgreens, and Seven & I Holdings Co.'s 7-Eleven. Realty Income As a REIT, it needs to pay out at least 90% of its pretax profit to maintain a favorable tax rate. It pays monthly dividends, it's raised its payout 130 times sinc ...

Group 1 - Manika is a macroeconomist with over 20 years of experience in investment management, stock broking, and investment banking [1] - Manika runs the profile Long Term Tips (LTT), focusing on generational opportunities in the green economy [1] - The investing group Green Growth Giants takes a deeper dive into opportunities presented by the green economy segment [1]

British American Tobacco p.l.c. (NYSE: BTI ) is an international tobacco company that manufactures and sells tobacco products around the world. They have a strong portfolio of products that includes Vapor products, Heated products, Modern Oral products, Traditional Tobacco products, andI believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (Chemical Engineering, University of California, Santa Barbara) in model predictive control and an MBA (Jones Scho ...

Group 1: Company Overview - British American Tobacco primarily operates as a tobacco company, with approximately 80% of its revenue derived from combustible tobacco products, predominantly cigarettes, which account for about 97% of the volume sold [2] - The addictive nature of nicotine allows British American Tobacco to maintain a steady consumer base, despite the classification of tobacco as a non-essential consumer staple [3] Group 2: Financial Performance - The company offers a high dividend yield of 7.1%, significantly above the broader market average of 1.2% and the consumer staples average of 2.6%, indicating potential risks associated with the investment [1] - In 2024, British American Tobacco's adjusted earnings payout ratio was approximately 66%, suggesting that the dividend is likely to remain safe in the near term [4] Group 3: Market Challenges - British American Tobacco faces a long-term decline in cigarette volumes, with a 5% drop in 2024, following declines of 5.3% in 2023 and 5.1% in 2022 [5] - The U.S. cigarette business experienced a significant volume decline of 10.1% in 2024, mirroring the struggles faced by Altria, which saw a 10.2% decline [6] Group 4: Strategic Considerations - Both British American Tobacco and Altria are attempting to offset volume declines through price increases, but this strategy may not be sustainable in the long run [7] - Investors should closely monitor volume trends in the U.S. market, as continued declines could signal deeper issues, especially if these trends affect the company's international operations [8][9] Group 5: Long-term Outlook - While the dividend appears secure for now, the ongoing decline in the U.S. market poses significant long-term risks, potentially impacting the company's ability to sustain its dividend [10]