13% rise in the last month isn't too shabby |
Just sit back and enjoy the ride plus divis on the way |
Difficult to call in the short term but I think 2900 is very possible.
That would then open up 3000 as when the interest rate starts to come down the yield here at that level is still super attractive.
Good luck all 👍🏻 |
I see one chartist has 2881p short term pencilled in, but I like Deutsche 3500p target on Friday better. |
Think the meeting is next week ? |
Pay day this Friday, I don't think they reinvest until the following Monday. Mixed emotions of course want shareprice to go up, but not to much until I have my shares, lol |
Waiting for Set rate cut to see reaction here as high dividend paying share. |
Yes and still cheap, lol |
another 50p ;-)
Deutsche Bank raises BAT price target to 3,500 (3,450) pence - 'buy' |
ITC years and all time high 510.65, closed 501.55 so near all time high, yield 2.74%.Not a bad investment for Bats. |
Do the buy backs v paying down debt make sense.. perhaps partly depends on what coupon their bonds are priced at?.
BATS arguably should provide detail on how profitable Vuse and Velo are.
They say..now profitable..that could mean £1, it's a pretty meaningless statement and it will be years before the overall CAPEX directed to new products will be repaid in post tax profits. |
Be interesting to see the latest analysts targets, last one in May 3450p by Deutsche, I can't see why we can't go back to June 22 price of around 3500p. Everything seems ok to me. |
The above 3 posts highlights exactly reinvestment risk.
We have all enjoyed the safety associated with interest on cash at over 5% but what happens when that comes off quickly and by then the high divi payers have already reacted??
I got 6.2% on an NS&I bond last September for a year and was very pleased with that but when it matures I won't get anything like that again and quality shares will have already legged up.
Good luck all 👍🏻 |
Lower cash deposit interest returns will drive money into equities.. :o)
August/September for the tide to turn.. |
Agree monty. Right now I'm getting 5.1% on instant access savings. But am looking to shift that into high dividend shares before rates start coming down. |
Yes you're right, if BOE cuts rate next week, I think investors may start looking at high yield shares. |
Divi reinvestments next should push Bats higher |
Must be due some brokers views next week, the last one was May 2024, Deutsche saying buy target 3450p. |
@MC, sounds like an investor(BAT) top slicing a profitable investment to invest in a (mistakenly) low rated investment(BATS own shares).
Again, I think it is possible that there may be a mismatch between the divs that ITC delivers on a regular basis and the value that the market puts on those divs and the valuation of ITC itself.
Fact is I don't know....at least not yet. |
We all know Bats are cheap, even the bears, lol.I think ITC at around a record high, bodes well for Bats. |
On 12th March 2024 ITC share price was approx. 404. Today, its about 495.
On 12th March I posted as below:
I never did understand the logic in selling down its ITC stake.
MCunliffe1 - 12 Mar 2024 - 11:02:24 - 8629 of 9351 British American Tobacco - BATS
BATS sells down part of its stake in ITC.
BATS consequently receives a smaller amount of dividend from ITC.
BATS uses some of that ITC sale receipt to buy its own shares.
BATS can pay a greater dividend to its shareholders because there are fewer shares.
BATS has less income from ITC to pay its own shareholders.
Kinda' strange don't you think?
Is this a good time to be selling some of the ITC stake given ITC share price has fallen 16% this year so far. Wouldn't your BB logic imply that BATS should be buying MORE of the ITC shares?
With BATS owning 29% of ITC perhaps ITC's drop is also dragging down BATS. However, there are 36 analysts covering ITC. 15 give ITC a strong buy, 17 a buy.
So, BATS management are considering a 4% sell. |
Dividend paid next week, dividend reinvestment including mine, I knew we would get less bang for our buck as the yanks say, lol |
The massive dividend was thru the sale of the shares, not thru routine dividends. The question surely is what are the regular divs worth on an annual basis? |
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