|Bid||2,817.00 x 0|
|Ask||2,817.50 x 0|
|Day's Range||2,755.00 - 2,830.50|
|52 Week Range||2,422.50 - 3,308.50|
|Beta (5Y Monthly)||0.65|
|PE Ratio (TTM)||10.10|
|Earnings Date||Jul 30, 2021|
|Forward Dividend & Yield||2.16 (7.94%)|
|Ex-Dividend Date||Jul 08, 2021|
|1y Target Est||3,825.26|
Altria's (MO) low-risk tobacco offerings such as IQOS and on! are gaining popularity. Moreover, high pricing for tobacco products are an upside..
One of legendary hedge fund manager Paul Tudor Jones’s 10 golden rules of investment is “run your winners and cut your losers”, so it is with some trepidation that this column returns to British American Tobacco. The FTSE 100 stalwart has been a poor pick since our first look in 2017: a paper capital loss of more than 45pc, or almost £24 a share, is only partly offset by 726.6p a share in dividends. Despite the stock’s unpopularity, the powerful cash flow generated by the core tobacco business and the attractive valuation on the basis of both earnings and yield make us reluctant to cut and run. Investors who run rigorous environmental, social and governance (ESG) screens before they select a share will not even consider BAT and there are other good reasons for giving up on the stock, especially as the regulatory pressure on tobacco remains intense. The Tobacco Tax Equity Act proposed by the Democrats in America is just the latest example. The initiative, which would raise federal levies on tobacco products, came straight after suggestions that President Joe Biden’s party would also consider legislation to lower the nicotine content in cigarettes, in addition to re-examining a possible ban on menthol-flavoured products.
London stocks held to gains, helped by strong performances by AstraZeneca and two tobacco companies. Also in the spotlight was a stunning debut for Darktrace.