BAT still glowing for investors
Cigarette group has produced the goods over the years but there may be bumps ahead, writes Marc Hasenfuss
Is investor sentiment being snuffed out for British American Tobacco (BAT)? The cigarette giant has been a portfolio stalwart for many local investors who have managed to look past its peddling of potentially harmful and addictive products. BAT has delivered above-average capital growth while consistently satisfying dividend cravings. David Lerche, senior investment analyst at Sanlam Private Wealth, says over the past 17 years BAT has delivered more than 13% compound annual dividend growth in British pounds, increasing its dividend every year this century. "This illustrates its ability to continually improve margins through operating efficiencies and market share gains, despite industry-volume declines." But at the time of writing, BAT had lost around 25% of its market value over the past three months on the JSE. Some of the retreat has been on the back of recent rand strength. But even on the London Stock Exchange, where the group has its primary listing, the share price has scuttl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.