{"id":66885,"date":"2023-09-29T13:21:13","date_gmt":"2023-09-29T17:21:13","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/3-reasons-to-buy-the-dip-in-british-american-tobacco-nysebti\/"},"modified":"2023-09-29T13:21:23","modified_gmt":"2023-09-29T17:21:23","slug":"3-reasons-to-buy-the-dip-in-british-american-tobacco-nysebti","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=66885","title":{"rendered":"3 Reasons To Buy The Dip In British American Tobacco (NYSE:BTI)"},"content":{"rendered":"
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British American Tobacco (NYSE:BTI<\/span>) has had a rough few quarters.<\/p>\n

Since the start of 2022, the multinational tobacco, vape, and nicotine product producer has seen its stock tumble more than 30%, from ~$47 per share 18 months ago, to just above $30 per share now:<\/span><\/p>\n

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In that time, there’s been countless digital ink spilled on the company and its murky prospects, including negative regulatory updates, new product analysis, and broader concerns about the combustibles market.<\/p>\n

However, zooming out, we think that BTI presents a strong opportunity for income investors right now, for 3 key reasons that are so simple as to be overlooked by a majority of market participants:<\/p>\n

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  1. BTI sells an addictive product.<\/li>\n
  2. The dividend is incredibly robust.<\/li>\n
  3. The valuation is historically and relatively attractive.<\/li>\n<\/ol>\n

    Combined, we think that BTI’s value proposition to income investors has never been stronger and that the stock is poised to continue paying strong dividends well into the future.<\/span><\/p>\n

    Let’s dive in and examine each point in detail.<\/p>\n

    BTI’s Addictive Product<\/h2>\n

    A compelling product is at the center of any good business, and there’s no better product than something that is 1.) consumable and 2.) addictive.<\/p>\n

    That way, consumers keep coming back for more.<\/p>\n

    The ideal product would also be an incredibly high margin so that each consumable is cheap to produce but sells for a considerable markup.<\/p>\n

    Thankfully, BTI’s product portfolio hits all the aforementioned points, and consists of three main categories:<\/p>\n