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Does British American tobacco currently make sense as a savings plan and individual investment?

Hi,

I've been thinking about getting British American tabacco $BATS (-1,67 %) into the portfolio for the dividends, but now the share has made a good little jump and I'm wondering whether it's currently too high to invest in it or whether it doesn't matter if you have a savings plan on it anyway and will make individual purchases.

What do you think?

11 Commentaires

BundesAktienMinister@BundesAktienMinister

No one-off investment at the ATH for years, rather a savings plan, in my opinion. The opportunities for one-off investments will come, but not at the moment.

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Dividendenopi👴@Dividendenopi

They really have had an amazing run for 20 months. Of course I'm happy about that with a current dividend yield of over 9% at my cost price, but personally it would be too expensive for a one-off purchase at the moment. In the long term, a savings plan could make sense and, if necessary, additional purchases in the event of major setbacks.

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risk_taker_1816@risk_taker_1816

@Dividendenopi That was also my idea, to put a savings plan of 50€ on it and just let it run for a good dividend investment on the side

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Earnus@Earnus

@risk_taker_1816 sounds trite, but it depends on your strategy. Are you planning for the long term? Are you buying $BATS because of the dividend? It's definitely quite expensive at the moment and there have of course been much better entry points, but if it's a long-term investment, there's nothing to stop you.

Personally, however, I would simply wait for a setback. For example, if the laws for smokers are to be tightened again. Wouldn't $MO and $PM be alternatives?

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D.S.@Cato_Bamboo

@Earnus $MO was only at the 52 week high yesterday

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Earnus@Earnus

@Cato_Bamboo I just wanted to point out alternatives to @risk_taker_1816, even though almost the entire sector is picking up considerably right now.

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risk_taker_1816@risk_taker_1816

I also looked at the alternatives, but somehow I like BATS the best and the dividend also looks nicer. With a €50 savings plan, I might have used it for a long-term dividend investment on the side

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Dividenden-Fuchs@Hickok45

My €425 savings plan for bat is still running. I also make smaller one-off purchases from time to time. I'm now close to 400 shares, the target is 500, but it's long-term for the dividend. When I reach 500 shares, the savings plan will be restructured. Half in Imperial Brands, half in Scandinavian Tobacco and half in something else.

Btw: take a look at Scandinavian Tobacco at the moment! Almost 10% dividend and a good diversification in the tobacco sector (pipe tobacco, cigars, chewing tobacco).

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Dividenden D.@Dividenden_Dompteur

Currently still fairly valued according to the share finder. Savings plan is running, dividends are reinvested. However, I would rather make a one-off purchase in the event of a setback.

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Marcus@Helleone

Too expensive for a one-off investment, although I already see potential for 60 euros. Would make a savings plan

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KevinE@KevinE

I see it this way: market timing works better with individual stocks. If it's not the right time for a good share, I don't buy it. If I really want to invest, but there are no great opportunities, they go into market-wide ETFs via a savings plan.

Personally, I waited almost 4 years in tobacco until I got into Altria (at €39) and BAT (at €29). At the moment, I don't think any of the big tobacco players are worth buying in order to generate an excess return.

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