British American Tobacco PLC bears the ticker symbol BTI, and this is my first mention of BTI for this new Viking Portfolio.  I have previously mentioned BTI for inclusion in some of my previous seven dog of the week folios, most recently in July 2022.

Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed Global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on total tobacco volume.

British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S.

The firm also sells vapor e-cigarettes, including its Vype brand, heated tobacco, with Glo, as well as roll-your-own and smokeless tobacco products. The company holds 31% of ITC Limited, the leading Indian cigarette-maker.

It distributes its products to retail outlets.

The company was founded in 1902 and is headquartered in London, the United Kingdom.

Three key data points gauge British American, or any dividend paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

BTI Price

British American Tobacco PLC price per share was $36.03 at Friday’s market close. In the past year, BTI share price fell $6.07 or about 15.5%.

If BTI stock trades in the range of $30.00 to $60.00 this next year, its recent $36.03 share price might reach $44.00 by next year. That upside estimate of $7.97 is based on about half the median of price targets from 3 analysts tracking BTI for brokers.

BTI Dividend

British American’s most recent annual dividend of $2.80 casts a forward annual yield of 7.77%.

BTI Returns

Adding the $2.80 annual estimated

bit dividend to (about half the median of 1 yr price estimates from 3 analysts) that is, a $7.97 one-year price upside estimate, reveals a $10.77 potential gross gain estimate per share.

At Friday’s $36.03 closing price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $10.77 gross gain makes a net gain of $10.41 X 28 shares = $291.48 for a 29% net gain including the 7.77% annual dividend yield.

In the next year our $1K investment in shares of BTI should generate $77.70 in cash dividends. Furthermore, a single share of BTI at Friday’s $36.03 price over 2 times less than the $77.70 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is perhaps a proper time to buy BTI shares, based on their dividends for 2023. The current dividend from $1K invested is 2.16 times greater than the BTI single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of British American Tobacco PLC. Only time and money invested in this stock will determine its future market value.

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