Postos
357hi, is it wise to build up a large position in 2-3 stocks and then use the dividends they pay to build up positions in other dividend stocks?
I would start with $BATS (-0,52%)
$RIO (-1,8%)
$O (-0,52%) and invest 100 per month in each of these stocks via a savings plan.
I need an opinion on whether this is a bad idea.
Spring Mountain Investments Ltd has reduced its stake in British American Tobacco $BATS (-0,52%) in British American Tobacco. The investor reduced its share of voting rights from 9.99% to 9.21% - and thus fell below the psychologically important 10% mark. Such changes in position by major players often influence the corporate governance dynamics of a company.
At the same time, the tobacco group is continuing its buyback program unabated. On April 17, the company acquired 129,740 of its own shares via UBS AG. These shares are now to be canceled.
Following this transaction, the total number of ordinary shares in issue is 2,200,816,413 (excluding treasury shares). British American Tobacco currently holds 133,013,619 treasury shares.
British American Tobacco $BATS (-0,52%) has announced a strategic realignment towards a predominantly smoke-free business by 2035, as outlined at today's Annual General Meeting (AGM). The company's revised strategy, unveiled in 2023, aims to adapt to the evolving consumer and regulatory landscape, with a focus on agility and precision in execution.
BAT reported a 5.2% decline in Group revenue on a reported basis for 2024, while organic revenue increased by 1.3% at constant exchange rates. The new product category business, which includes smokeless products, saw an increase in contribution of £251 million and achieved a margin of 7.1%.
The company's adjusted organic operating profit increased by 1.4% at constant exchange rates in 2024, with a strong operating cash conversion of 101%. BAT attributes these results to the resilience of its business and people, despite global macroeconomic challenges.
In line with its commitment to a smoke-free future, BAT reported that 29.1 million adults now use its smoke-free products, accounting for 17.5% of Group sales. The company is focused on product innovation to responsibly meet consumer preferences and has achieved profitability in its new category business two years ahead of schedule.
BAT's sustainability strategy has been revised to focus on five impact areas: Tobacco Harm Reduction, Climate, Nature, Circular Economy and Communities. This approach has earned the company a triple-A rating from CDP for its disclosures on climate change, water security and forests in 2024.
The company actively engages with stakeholders to promote tobacco harm reduction and encourages the use of smokeless products. BAT has published Omni™, a manifesto for change, and introduced evidence-based solutions for its vapor devices aimed at preventing underage use, improving product safety and increasing the circularity of devices.
For 2025, BAT expects a return to earnings growth in the U.S. and anticipates revenue growth of approximately 1% and adjusted operating profit growth of 1.5-2.5%, including a 1.5% transactional foreign currency headwind. The company forecasts a translational foreign exchange headwind on adjusted operating profit of 2% for the full year and 3% for the half year. BAT reiterates its medium-term targets of 3-5% sales growth and 4-6% growth in adjusted operating profit on a constant currency basis.
BAT plans to generate more than £50 billion of free cash flow between 2024 and 2030 and is committed to a disciplined capital allocation that balances investment in transformation with shareholder returns. The company has announced a 2% dividend increase and a £900 million share buyback for the year.
The AGM also noted changes to the Board, including the appointment of Soraya Benchikh as Chief Financial Officer and Director and Uta Kemmerich-Keil as Independent Non-Executive Director.
VELO Plus from $BATS (-0,52%) continues to grow rapidly and is driving bicycle growth. The data from the new Nielsen report shows growth of >300% yoy.
TLDR: while the numbers are not as impressive as Philip Morris, the company has exceeded general expectations, with a beat in revenue and EPS. In addition, the targets were largely met, even if VUSE in particular was rather disappointing. I remain confident and assume that a change of direction at GLO into the premium segment, as well as new Velo and VUSE products, will accelerate growth again. It is also important to note that the operating business was primarily weakened by the sale of the Russian subsidiary.
The weak euro is also weighing on the European business, which is performing very well.
My conclusion:
The figures look very disappointing at first glance, but in my opinion the management is making the right decisions and can also successfully turn them into sales (combustibles in the USA) and there are new products in the pipeline that should continue to drive RRP's growth, just like an environment that is expected to improve. RRP has grown very strongly for years now, even if it is disappointing, a small plateau is more than normal.
I welcome the share buybacks and the increased dividend and with the reduction in debt, this should increase in the future.
First a few words from Tadeu Marocco CEO of $BATS (-0,52%)
Sales in billion pounds
RRP sales in billion pounds
Combustibles
VUSE
Velo
Grizzly
GLO
Profit in billion pounds
EPS
Free cash flow and debt reduction
Dividend and share buybacks for 2025
A few words from the CFO
The company wants to use key performance indicators (KPIs) performance and expects a gradual gradual improvement by 2025 and a return to growth of 3-5 % turnover and 4-6% operating profit (on a constant currency basis) by 2026.
Five strategic pillars with 2024 highlights
Qualitative sales growth
Increase in gross profit
Acceleration of new category contribution
Sustainable profit growth
Cash flow generation of over £50 billion (2024-2030)
Combustibles
The company recorded different developments in the cigarette business:
Volume & sales development
US market & regional developments
VUSE
Market share & growth
Turnover & volume development
Regional developments
Outlook & challenges
GLO
Market & sales development
Regional developments
Modern Oral Velo
Traditional Oral Grizzly (chewing tobacco & snus)
+ 6
Yes could someone explain to me what the pros and cons of this are?
Thank you very much
Expanded three positions today (not yet in the update - why does it actually take half a day for a manual update to pull the new transactions?)
1000 x $HAFNI (+0,74%)
100 x $BATS (-0,52%)
100 x $NTG (+0,98%) (returned after an increase of almost 20 percent - I'll put something on the side again)
Let Trump, the coalition negotiators and the stock markets continue to go crazy - I *love* the prices of uncertainty! If things continue like this, I might even end up with 25k in dividends this year ...
$BATS (-0,52%) I'll buy a few more into my portfolio tomorrow at the divi discount. The path with the alternative products looks promising, so I still see price potential and if not, the lavish 8.5% divi seems secured for the next few years!
Imagine finding a bag with 15,000 euros in cash on a train. This is exactly what happened to a 33-year-old woman on ICE 1081 from Hanover to Munich. She discovered the bag full of 200 euro bills and handed it over to the Federal Police in Munich. The rightful owner has not yet been identified. If no one comes forward, the finder could receive a legal finder's reward of three percent, i.e. 450 euros.
What would the getquin community have done in this situation?
1. invested sensibly in an ETF, such as $IWDA (+0,64%)
2. $4GLD (-0,67%) safe is safe
3. all in $BTC (-0,19%)
4. benefit from the current dip American tech companies, such as $GOOGL (-1,98%) , $NVDA (+4,72%) or $META (+0,53%)
5. collect dividends just before the dividend season, such as $BATS (-0,52%) , $ALV (+0,85%) or $SREN (-0,34%)
6. invest irrationally, e.g. $4X0 (+0,68%) or $GME (+1,64%)
7. or would you take the money to the police and fill your war chest with the finder's fee of EUR 450?
Personally, I would probably choose option 1. If the owner suddenly turned up on my doorstep, I could sell the ETF and give him the money back. There might be a little more left for me as a return than the EUR 450 I would receive from the police 😉
Source: Articles can be found on the most popular news portals today.
$BATS (-0,52%) begins with the long-awaited VUSE ULTRA rollout. With this new product, BAT wants to create a premium segment in the vapor sector.
IQOS has already shown that consumers prefer premium products when it comes to electronic devices, which is one of the main reasons why GLO has not been successful so far, as it has concentrated on the discount segment. Meanwhile >60% of the HTP market is premium segment.
Should a similar trend emerge in the vapor segment, this would be a gigantic success for BAT. No other group currently has similar products in the pipeline.
$BATS (-0,52%) is becoming increasingly popular with the major institutions. Will Big Nicotine soon be valued like other constant & safe consumer staples?
