I opened a new position with the purchase of British American Tobacco p.l.c (BTI)
72 shares @ $35.53 on 11/29/2018.
68 shares @ $33.30 on 12/14/2018.
This increases my forward 12-month dividend income by $352.80 to a total of $7,157.20
I also updated my portfolio page to reflect the change.
This company is my third company in the tobacco industry that I own. This will most likely be my last as I own a lot for my small portfolio. I will be making another buy of Altria Group (MO) as my last buy of the year.
British American Tobacco currently supports a massive dividend of 7.75%. It sports a 5-year dividend growth rate of 6.48%. therefore, combining both currents yield and growth rate makes for a great one-two punch.
The company has a 5-year dividend yield average of 3.90%. Like I mentioned above, The company is sporting a dividend yield of 7.75% which means that there is a 385 basis point difference.
This tells us that the company dividend yield and stock price is significantly higher and lower respectively.
I find BTI to be undervalued, and I recommend it as a BUY at this time. I have a fair value price at $54.76. This means that BTI is 71% Undervalued based on today’s price of $32.04 (12/20/2018).
What do you think of the company? Plan on owning it or already do? or why not?
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