British American Tobacco Dividends - BATS

British American Tobacco Dividends - BATS

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
British American Tobacco Plc BATS London Ordinary Share GB0002875804 ORD 25P
  Price Change Price Change % Stock Price Last Trade
21.00 0.8% 2,660.50 16:35:28
Open Price Low Price High Price Close Price Previous Close
2,663.00 2,639.00 2,685.50 2,660.50 2,639.50
more quote information »
Industry Sector

British American Tobacco BATS Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

unastubbs: this and all tobacco stocks are in a dark place due to the US election result with Biden seen as a shoo-in. with his ESG agenda one can't see him being sympathetic to this type of company (putting it mildly). can't see much upside here in the next twelvemonth. however, i'm reasonably confident about the dividend so will continue to hold. atm BATS = 21% of my portfolio, and 25% of the income derived therefrom - which I'm not very comfortable with. if we ever get back to £32 i will unload half of that. seems a long way out now... i'm an income investor and found myself pushed towards taking this large holding in the summer when various other firms i have invested in over the years (banks, insurers - you know the pack drill!) decided to pass on the distribution. anyone else out there with a similar tale of woe!? good luck to all longs - una
andrewbaker: Further to my 4th. August comment, BATS is once again showing up as a buy whilst the rest of the market doesn't know what it's doing. At a PE under 10, a dividend yield not that shy of 8%, no risk to sales, and ... what is bad (excluding ethical investors, for whom I have respect)? Far better than cash in the bank, and as long as you have enough to call on so no hasty sale of the shares will be required, a great home for medium to long term savings (and not all of it, of course!)
geckotheglorious: Stocks dividend-hunters are buying Looking at which stocks were bought up in UK equity income funds, miner Rio Tinto (LSE:RIO) was among the most popular, making up the top 10 positions in 37% of UK equity income funds compared to 27% six months ago. Last month, it increased its dividend by 3% in a show of strength, despite a 20% fall in net profits. British American Tobacco (LSE:BATS) has also become a top 10 position in many more portfolios. It still has an attractive 8% dividend yield, yet its shares have taken a knock as smoking rates decline and the group pins its hopes on vaping for future revenues. hTTps://
gary1966: kiwi2007, And why do I care about PM when I own shares in BATS who came out with their own very good half year results on 31/7? Maybe transfer from PM to BATS products as BATS reported strong trading in the US.
simba_: Minerve, that all sounds great but the same arguments could have been made at £40 and chasing the price down further would have been a terrible decision as things stand..In any case, I was pointing out why someone would want the price to go higher. A good dividend yield is great but if the share price continues to fall we still lose money in the end. Ultimately, we need the market to agree with us. And for the record, I do intend to buy more here.
polaris: Big tobacco has been in decline since 2016. None of us can argue with that as the SPs are significantly lower today than they were 4 years ago. The question is whether it is a decline that will continue? Where is the bottom? Can you trade the channel? The main reason i am here is that i spent a few hours this weekend looking at IMB, BATS and Altria for possible longs, given the recent falls. It's rare that i will short, unless the company is massively over-valued. That isn't the case here. Big tobacco seems to be at the bottom of recent downward channels and so seems open to longs rather than shorts. Over last few years i have been long tobacco at various points and the arguments/discussions around net debt, FCF and dividends have played out again and again. Anyone who has been long for the last 4 years has traded capital losses for dividend returns. BATS has done a lot better than IMB for example, where capital erosion far outweighs the dividend returns. FCF is an important aspect but the divis are also paid out of that..and principal (plus interest) on debt. In principle, BATS can pay off the debt over a 5-6 year period, assuming flat margin on falling sales volume (i.e. price rises match falling volumes). However, that would also mean zero dividend for that period and the share price would suffer for that. You cannot have your cake and eat it. It would take at least 10 years to retire the debt while also keeping the returns investors relatively happy. IMO, it's not even about retiring all debt. TBH, the current interest rates favour carrying debt if you can service it, particularly if you can get a fixed interest rate coupon. Big tobacco can probably do that on quite high levels of debt. In fact, it has been doing this for a while. However, the 'market' wants debt ratios to come down fast and the SPs are being hit accordingly. This probably means cutting dividends (as IMB did recently) to release more FCF for debt repayment. share price then gets hit as the yield falls...rinse and repeat. That cycle will be broken at some point, just a matter of when.
muscletrade: From Gen Alpha/seeking Alpha British American Tobacco: Back In Deep Value Territory Jul. 19, 2020 10:36 PM ET|12 comments | About: British American Tobacco p.l.c. (BTI), Includes: MO, PM Gen Alpha Gen Alpha Long only, value, Growth, growth at reasonable price (875 followers) Summary British American Tobacco operates a leading portfolio of both combustibles and next-generation products. Its share price has dropped off since the FDA's authorization of MRTP designation for competitor Philip Morris' IQOS heated tobacco product. In this article, I show why BAT's shares are highly undervalued. Change is the name of the game in corporate America. It seems that every other day, there is a post on LinkedIn (MSFT) about the merits of an “adapt or die” culture. With good reason, many companies that were highly relevant decades ago no longer hold the same prestige that they once held. Take Xerox (XRX) or Eastman Kodak (KODK), for example. Both were industry stalwarts in their heyday, and Xerox was so popular that its namesake became a verb. For example, who hasn’t heard the expression: “Can you Xerox this for me?” The so-called economic phenomenon of “creative destruction” is a powerful one, as it compels companies to continuously adapt or otherwise fade into the sunset. The tobacco industry has had the benefit of not having to change over many decades. However, in recent years, there has been a surge of innovation in the industry, with heated tobacco and vaping being prime examples. More recently, in what is seen as a victory for Philip Morris International (PM), the FDA, on July 7th, approved the marketing of the IQOS Tobacco Heating System as a modified risk tobacco product (MRTP). Specifically, this approval allows Philip Morris International and Altria (MO) to market IQOS with the following information, as noted on the FDA release: AVAILABLE EVIDENCE TO DATE: The IQOS system heats tobacco but does not burn it. This significantly reduces the production of harmful and potentially harmful chemicals. Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals. Turning attention to British American Tobacco (BTI), who is the primary competitor to Philip Morris and Altria, BAT’s shares have dropped off since the FDA’s announcement. As seen below, BAT has underperformed its two peers by around 12% over the past month. While some of the drop could be attributed to the ex-dividend on July 9th, I believe at least a part of the drop, if not the majority, can be attributed to the market’s perception of the FDA announcement on IQOS as a negative for BAT’s U.S. business. (Source: Yahoo Finance) While IQOS’ first-mover advantage and modified risk designation pose a risk to BAT’s combustible business, I see the share price reaction since July 7th as being unwarranted, as BAT has an attractive portfolio of next-generation products of its own. A Diversified Tobacco Company British American Tobacco became the largest global tobacco company by revenue, when it acquired the remaining stake in Reynolds American that it did not already own in 2017. It owns a broad portfolio of both traditional combustibles and next-generation products, such as its heated tobacco and vaping offerings. It also owns oral products such as moist snuff, snus, and the fast-growing category of tobacco-free nicotine pouches. As seen below, this market is expected to grow at a CAGR of 13% and reach a global TAM of $16.6 billion by 2024. One of the key drivers for this growth will come from increasing numbers of people who are trying to quit traditional smoking. (Source: Business Wire/Technavio) While IQOS’ MRTP status presents a key risk and could potentially chip market share away from BAT’s combustible products, the company does have a pending application with the FDA to sell its own heated tobacco Glo devices. The application was submitted in 2018, and while no one knows when and if a decision will be made to allow the Glo device to be sold in the U.S., I would expect a decision to come between later this year and the middle of next year. This rough estimate is based on the two years that it took the IQOS application to be reviewed, with additional time given for COVID-19 related disruptions. In addition, I see the MRTP designation as a net positive for the heated tobacco sector as a whole, as it shapes consumer perceptions about the product. This is a net positive for when BAT’s Glo devices do get FDA approval, assuming they get the same MRTP designation. (Source: Company website) As the Glo application is pending with the FDA, BAT has positioned itself well with its tobacco-free nicotine pouch Velo product. Although this category is relatively new, it is seeing strong growth numbers, as evidenced by the 273% revenue growth that it saw last year. In addition, it also has its vapor offerings with Vuse and Vype products. It should be noted, however, that Vapor sales have declined in the U.S. since the outbreak of lung-related injuries and deaths that were reported in 2019. While the deaths have been linked to products containing THC and not nicotine, public perception (or perhaps misconceptions) on vaping took substantial damage. However, decreases in vapor usage translate to a slower decline in the volume of combustibles. Per BAT’s first half 2020 update, the U.S. cigarette industry volume decline is expected to be just 4% this year, which is an improvement from the previously forecasted 5% decline. Also, let’s not forget that BAT is a global company with strong revenue growth in both new categories and combustibles. As seen in the full year 2019 metrics below, the company managed to grow new category revenue by 32% on a worldwide basis, and combustible revenue by 4.6%. This translated to an impressive 8.4% YoY EPS growth for the full year. (Source: Spring 2020 Investor Presentation) More recently, BAT’s first-half 2020 results look promising, as the Vuse brand grew market share to 26.2% in the U.S. vapor category. Its international vaping brand, Vype, continues to gain traction as it gained share in France and Germany, where it has a leadership position, and is the fastest-growing vaping brand in Canada. In addition, management reiterated its commitment to reducing leverage to below 3.0x by the end of 2021. As seen below, leverage has steadily dropped from 4.0x in 2018. (Source: Company Investor Presentation) Turning to a peer comparison, as seen below, BAT’s P/E ratio is 13% lower than that of Altria’s. The gap is even more pronounced in comparison to Philip Morris International, with BAT’s P/E ratio being 43% lower than that of PMI. Evidently, PMI is seen as the quality play in the tobacco space, with its leadership position in IQOS and a stronger balance sheet. However, I see the 43% discount on BAT’s shares as being rather excessive, especially given its robust portfolio of next-generation products and its commitment to deleveraging its balance sheet. (Source: Created by author) Investor Takeaway British American Tobacco operates a leading portfolio of tobacco and tobacco-free products, and has demonstrated its ability to adapt to changing consumer tastes and behaviors. In addition, I’m encouraged to see management’s commitment and progress towards deleveraging its balance sheet, which has been an overhang and risk factor for the company since acquiring the remaining stake in Reynolds American in 2017. I see BAT’s share price drop since the FDA’s July 7th announcement of IQOS’ MRTP designation to be unwarranted. This announcement is a net positive for BAT’s heated tobacco product that is currently under FDA review, assuming that it gets the same designation after approval. I have a Buy rating on shares at the current price of $35.44 and a P/E ratio of 8.5. I also view the 7.5% dividend yield to be safe and attractive, as management has guided for a ~65% dividend to adjusted earnings payout ratio. This allows management to use the remaining funds for continued deleveraging and reinvestment into the business. I have a $50 price target on shares, which would bring the P/E ratio to a reasonable 12.0 and represents significant upside from today’s levels.
waldron: Frank Prenesti Sharecast News 09 Jun, 2020 07:29 09 Jun, 2020 11:55 BAT warns of Covid-19 sales hit but commits to dividend payout pall-mall-cigarettes-tabac-bat British American Tobacco lowered full year guidance as coronavirus travel bans and lockdowns in South Africa, Mexico and Argentina hammered sales. The maker of Pall Mall and Rothmans on Tuesday said it expected constant currency adjusted revenue growth of 1% - 3% from previous guidance of around the lower end of 3% - 5%. It also forecast mid-single figure adjusted diluted earnings per share growth, compared with high single figure previously as sales in emerging markets were hit. BAT added that it would maintain dividends, paying out at a ratio of 65% of adjusted diluted EPS and growth in sterling terms, “supported by a strong liquidity position”. It said revenue had been especially hard hit in South Africa where sales of tobacco were stopped completely in March as part of measures to combat the virus. US sales were proving more resilient than expected across the industry, with volumes falling around 4% this year. Debt reduction would continue, but at a slower rate, BAT added. Richard Hunter, head of markets at interactive investor said the "bull case" on BAT shares remained clear. "BAT continues to generate cash on a prodigious basis given the underlying inelastic demand of its products, while also reaping the reward of high margins following a major cut to production costs after moving its manufacturing facilities some years ago to more cost-efficient geographies," he said. Hunter said the stock had outperformed the FTSE 100, rising nearly 4%, as compared to a 12% decline for the wider index over the last year, displaying some of its defensive qualities. "At the same time, appetite for the shares is undiminished, with the market consensus remaining firmly in place as a strong buy.” AJ Bell investment director Russ Mould said analysts had been looking for a 4% increase in EPS to 335.4p a share, which underpinned estimates of an identical increase in the full-year dividend – paid in quarterly instalments – "to just shy of 219p a share". "If that sum is indeed paid, it would add to BAT’s streak of increased annual dividend payments which dates back to 1998, according to Refinitiv data," Mould said. “Those forecasts will not be going up after today and they may even come down very slightly, but a dividend of just under 219p a share still equates to a dividend yield of 7.3%, more than enough to catch the eye of income-starved investors who have seen 46 FTSE 100 firms cut, defer, suspend or cancel a dividend payment already in 2020." “The question that analysts need to ask themselves about BAT – and indeed the other big payers in the FTSE 100 – is whether the pay-out ratios are defensible over the short-term, owing to any hit to business from COVID-19, and then the long-term, which issues such as competitive position, regulatory threat, management acumen and financial strength will all remain key considerations.". Mould also cautioned that the tobacco industry was no longer guaranteed to be immune from volatility, with falling global volumes and regulatory pressure on branding and advertising and now Next Generation Products which could mean "some investors are less convinced of the long-term cash-generative capabilities of tobacco".
muscletrade: from motley fool contributor. (not always a fan but hard to argue against). . Recent market declines have thrown up some fantastic bargains in the FTSE 100. This could be an opportunity that’s too good to pass up for long-term investors. With that in mind, here’s one 7%-yielding FTSE 100 dividend stock that’s recently fallen out of favour with the market. However, it looks appealing as an income investment from a long-term perspective. Income and growth British American Tobacco (LSE: BATS) is one of the FTSE 100’s top income stocks. Ethical considerations aside, this company has one of the best dividend growth track records of all FTSE 100 companies. It has also achieved one of the most reliable earnings growth records of any large-cap stock over the past six years. Net profit has increased at a compound annual rate of 9% for the past six years. Meanwhile, British American has hiked its dividend at an annual rate of nearly 7% per annum. Recent trading updates from the business suggest that this trend will continue. For the year ended 31 December 2019, the company reported a 6.2% increase in adjusted revenue at current exchange rates. Adjusted profit increased by 7.6% and adjusted earnings per share jumped 9.1%. Meanwhile, the group’s strong cash flows allowed it to reduce net debt by 4%. Rising revenues, coupled with fatter profit margins, helped the company delivered this performance. These are all extremely positive developments. Analysts have expressed concern about British American’s high level of borrowings in the past, but this release seems to suggest that management has as the company’s debt pile under control. What’s more, the business was able to pay off around £2bn of debt, even after returning £4.5bn to shareholders via dividends. Following this performance, management has decided to increase the firm’s full-year dividend by 3.6%. Growth initiatives The company’s 2019 results also show British American’s growth initiatives are yielding results. Revenue from so-called “new categories“, which includes tobacco heating and vapour products, such as e-cigarettes as well as “modern oral” tobacco products, increased nearly 37% year-on-year to £1.2bn at current exchange rates. Management is confident this trend can continue. It’s forecasting £5bn of revenues from these new growth initiatives by the end of the decade. Cash is king British American’s impressive cash flow metrics suggest the dividend is exceptionally safe for the time being. At the time of writing, the stock supports a dividend yield of 6.5% for 2019. It’s also set to increase to nearly 7% over the next 12 months. Further, after recent declines, shares in the company are dealing at a price-to-earnings ratio of just 9.6, which suggests the stock offers a wide margin of safety at current levels. Indeed, considering British American’s strong cash generation, the track record of growth and future potential, this seems to undervalue the business substantially. As such, now could be a great time to snap up shares in this undervalued income champion. Its long-run potential is highly attractive, and the market-beating dividend yield means investors will be paid to wait for market sentiment to improve. The post Why I’m planning to buy more of this 7%-yielding FTSE 100 dividend stock appeared first on The Motley Fool UK.
mr_rooster: Not sure pOper but ciuld be this article poniting to divi cut. Tuesday 28 May 2019 11:08am Interactive Investor Talk What is City Talk? Latest Vodafone dividend cut: which UK shares might be next? Share Interactive Investor Talk Contributor Vodafone dividend cut: which UK shares might be next? (Source: iStock) By Tom Bailey from interactive investor. Vodafone's cut might be a canary in the coalmine for FTSE 100 shares. Over the past year the market has increasingly cooled on Vodafone (LSE:VOD). The company has a long list of problems, including the high cost of 5G investment, being squeezed by competition on the continent and high levels of debt. The company's share price fell by roughly 30% between April 2018 and April 2019. As a result, the company's dividend yield shot up to a seemingly generous 9%. Now, however, reality has caught up with the company's payout level. On Wednesday 15 May, Vodafone announce its dividend would be cut by 40%, giving it a new yield of around 6%. According to Simon McGarry, senior equity research analyst, Canaccord Genuity Wealth Management: "The red flags have been there for all to see - the dividend yield was dangerously high, low dividend coverage (ratio of earnings to dividends) and dividend growth had slowed - last year growth was only 2% and in its recent statement, there was no growth at all." The share has consistently featured on our Dividend Danger Zone screen since its creation in 2016. A number of high-profile investors had previously grown concerned about Vodafone's position. Mike Fox, manager of Royal London Sustainable Leaders fund recently told Money Observer that he had sold his stake in the company. Similarly, Robin Geffen, chief executive of Neptune Investment Management, sold out of Vodafone last year. Vodafone, however, isn't likely to be the only major UK company seeing a dividend cut in the coming months. The dividend payouts for a number of FTSE companies currently look perilous. According to Geffen: "Vodafone's announcement should be viewed as a canary in the coalmine moment for UK equity income investors" Geffen fears that many other supposedly "safe" dividend-paying companies are also likely to face a cut, citing falling levels of dividend cover as his key concern. He adds: "We would put the tobacco majors Imperial Brands (LSE:IMB) and British American Tobacco (LSE:BATS), BT Group (LSE:BT.A) and the major utilities stocks in that category." British American Tobacco currently has a dividend cover of 1.35 times, Imperial Brands 0.87 times and BT 1.47 times. As a rule of thumb, shares with a dividend cover score of above 2 are considered reliable dividend payers. Meanwhile, a number of companies on our Dividend Danger Zone screen all have dangerously low dividend covers. The worst offender is Stobart Group (LSE:STOB), with a dividend cover of 0.5 times. That means that half of its dividend is being paid for with borrowing. The infrastructure and support services company already cut its dividend last December, citing a lack of cash. Further cuts, it seems, may still be ahead. Hammerson (LSE:HMSO), the property group, is also on the screen, with a particularly high net debt to EBITDA ratio of 10.9 times. This was one of the reasons it entered our screen in March. At the time, McGarry noted that the company was attempting to sell off assets to cut its debt burden. But, he warned: "Hammerson might struggle to deliver its strategy to dispose of retail parks in a bid to reduce leverage, which is too high at 40%+ loan-to-value." The company's dividend cover is currently 1.1 times. Also on the screen is SSE (LSE:SSE), with a dividend cover of 1.2 times. Similarly, Geffen is bearish on the dividend prospect of the utility sector as a whole, noting his is the only IA UK Equity Income Fund to have 0% exposure to utilities. The sector has an average cover of 1.29 times. This article was originally published in our sister magazine Money Observer.
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