2D·

When is it a good idea to buy more?

$BATS (-0,78 %)

I bought in at €27.xx and am very happy with my defensive cash flow machine;

I’d like to add another tranche—when would you consider doing so?

Right now, I see a target of €45–46

I’m up 75%

including dividends, 120%

YOC is 10.1% 🤘🤣

The additional tranche would amount to about one-third of my current investment.

Thanks for your opinion

9 Comentarios

KevinE@KevinE

I bought in three tranches at an average of 29€ per share. They were cheap then. I don't see any reason to buy unless the price drops below 37/38€.

It's quite possible that I'll never add to my position again. At the current price level, I don't see the stock outperforming the market over the next few years.

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jkb92@jkb92

I assume you’re looking to hold this for the long term. In that case, I’d wait and see if the price holds around 4,000 GBX. If it doesn’t, there’s still plenty of room to fall from a technical analysis perspective. The stock has recently failed to break through the 4,800 GBX level twice, and I could certainly see the correction extending further. If you look at the chart history, the distance from the 200-week EMA that the stock covered during its upward momentum in May is actually above average.
Either way, entering the market now isn’t a contrarian move.

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Daniel@Dividani

@jkb92 Thanks for your opinion; I'll hold onto it for the long term. I'm also pretty sure it'll become a "dividend king"...

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Smudo@Smudeo

If you're that far in the black—now's the time to buy.
After all, you didn't add to your position when the price was below 35 euros in recent months or years.
It's a good dividend stock.

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jkb92@jkb92

@Smudeo I don't understand the logic behind it

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Smudo@Smudeo

@jkb92 It was clear to you 🫪

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jkb92@jkb92

@Smudeo 😁😘

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Donald D.@Privateer

22H

My minimum requirement for tobacco stocks is a dividend yield of over 6%. At 7%, I’m already getting interested; at 8%, I’ll buy more. My cost basis for BAT is about €29. So I guess I’ll have to wait a little longer. I’ll sell if the dividend yield drops below 5%. This isn’t a recommendation—everyone has to decide for themselves.

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Smudo@Smudeo

21H

@Privateer Your dividend yield is always different from the stock’s value based on equity.
If the stock price rises and the dividend (not the yield) is reduced,
It’s possible that you’ll fall below 5%!
But your approach also means you’ll sell the stock if the dividend yield falls below 5%—in other words, if the price drops!
This also applies when dividends are suspended.
It’s possible that this is a strategy, too!

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