Thank you for the kind words Hornet! It’s very much appreciated and I hope I added some value.
That’s a fantastic question for sure! Tobacco & Energy stocks have not had a great time in recent years due to ESG reasons. It’s impossible to say what will happen, however energy is probably in a better position than tobacco as oil/gas is still very much needed in today’s world.
I’m limiting my stock holdings of these type of companies to only a handful. BAT looks great from a fundamentals basis so I think it’s worth the risk. Especially as they have a juicy 8% dividend which has no signs of going away soon!
There is a difference between unethical and illegal. I don’t have any BATS at the moment, but I have held some in the past. Selling a dangerous product like cigarettes may be unethical, but bribery is illegal. Under UK laws you can be prosecuted for bribery even if it takes place abroad with foreign officials.
Personally I don’t have an issue with investing in less ethical investments. I can’t change the world, and me making a few quid off these companies doesn’t make any difference in the long run.
Totally agree! Also, the amount of tax paid is huge so at least it contributes to the treasury similar to alcohol which causes similar problems in households. Having said that I did sell mine just because I think it is going to become an extinct business in time.
The dividends currently are not covered by earnings well. I see no q4 on ex divi data.
If they cut then it’s not going to be good for SP. They also have a lot of debt.
But earnings forecast to go up 13% for next few years according to simplywallstreet.
So I’m probably going to sell and buy on the next dip. Monthly smoothed Heiken Ashi is going sell.
Hey all I’m thinking of starting a position with BAT. Price looks very low by historical standards. What do we reckon worth the investment?
I don’t know anything about the tobacco industry but the dividend yield looks good
They’ve been saying that for years, yet despite everyone being aware that it’s bad and that it can kill, it still doesn’t deter the millions (albeit declining) who continue to smoke.
BATS has expanded its market via vapes and e-cigs and you can almost envisage lawsuits in the future for when someone will try to claim that they didn’t know these products might not actually be that good for you.
Until then, it continues to rake in the $$$ and £££ and pay out fat dividends (obviously, do your own research).