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British American Tobacco P.L.C., with the ticker BTI, is a large-cap tobacco company operating in the consumer defensive business sector. This is odd-pick leading three remaining consumer cyclical candidates. It is my first report on British American Tobacco P.L.C. for my Viital portfolio the stock has been selected for one of my previous six.

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.

British American Tobacco p.l.c. was incorporated in 1902 and is headquartered in London, the United Kingdom.

Three key data points gauge any dividend equity or fund such as British American Tobacco PLC.

(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’s price per share was $40.17 as of yesterday's market close. One year ago its price was $38.71. Thus, BTI’s share price rose $1.46 or almost 3.8% in the past year.

If BTI’s stock trades in the range of $33.00 to $53.00 this next year, its recent $40.17 share price might rise by $9.83 to reach $50.00 by July 12, 2023. My $9.83 upside estimate is $1.89 under the median of one-year price estimates from three analysts covering BTI.
 

BTI Dividends

British American Tobacco’s most recently declared quarterly dividend of $0.74 is payable August 22, to shareholders on record as of July 7th.

Since January 15, 1999, BHP paid semi-annual dividends generally increasing annually until February 2018, when it switched to quarterly dividend payments. The recent forward-looking annual dividend of $2.96 equates to an annual yield of 7.37% as of yesterday's share price of $40.17.
 

BTI Returns

Adding the $2.96 British American Tobacco annual forward-looking dividend to my estimated one-year price upside estimate of $9.83 shows a $12.79 potential gross gain, per share, to be reduced by any costs to trade BTI shares.

At yesterday's $40.17 closing price, a little over $1000 would buy 25 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated $12.79 gross gain estimate per share results in a net gain of $12.39 X 25 shares = $309.75. for a 30.9% net gain including a 7.37% forward-looking annual dividend yield.

So it is that British American Tobacco P.L.C. shows a possible 30.9% net gain including a 7.37% forward-looking dividend yield.

Over the next British American Tobacco shares could generate $73.70 in cash dividends. Of course, a single share of BTI stock bought at yesterday's $40.17 price is almost half of the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up BTI shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.83 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

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

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