Just out of curiosity.. is the only basis for investing in BAT the high dividend yield of 9.5%?
Becuase that does not really make sense to me if it is. I mean sure the 9% yield is great and all but what's the point in buying a dividend stock if it's not meant to be held long term... I mean I saw the chart and BAT was around RM 60 in 2015... every year since then I saw a RM 10 decrease is share value.
So if I assume they pay 10% (for ease of calulation).. with 1 share of BAT, I would get RM6 RM 5 RM 4 RM 3 Rm 2 RM 1 = total RM 21.
But I lost RM 50 in share value..for that RM 21.
Am I missing something in the way dividends work? Shouldnt share value increase over time so that even if the div yield is low it will still grow as it follows the share value
We can only hope after Covid crisis BAT will be back in the 13-15 range. I believe it will. You must understand it's business is not only affected by illegal cigarettes but the channels that can't fully operate and lower sales consumption during this pandemic which similarly affected the beer industry as well. It's share price is painful to watch so I'm treating it as FD in the bank until this bloody Covid crisis is over. I don't think it will drop any lower than 10 during this crisis, hopefully I'm not wrong.
BAT & PMis facing two main problem Illegal cigarette and vape/pod 50% of youth have switched to these type of smokes .
In the 90s and Early 2000s BAT was a premium cigarette brand it’s value has declined tremendously and even with their NEO it’s not going to make a comeback unless the do a major overhaul .
It’s a very risky stock to keep for the long haul . But short term I think can goreng I might be wrong lah !!
I don't feel "illegal Cigs" and Vape" are really taking Biz from BAT. It is constant health promotion that is killing BAT revenue. Illegal Cigs and Vap are "Outside" Bat biz scope ( not even Bat product Line---how can they impact BAT bottom line ) Illegal Cigs are cheap product with little fragrant and extremely "light weight in tobacco quality"
In order to deflect complaint about falling revenue, management just push problems to illegal Cigs. However Economy has a profound on effect Cigs consumption, once things are rosy again, demand pick-up naturally-----"Cig is till Death do we part "
We have about 4 million (Illegal + Legal )Workers----Cheap Cigs are here to stay. BAT has more expertise then anyone else to produce Cheap Cigs ( sources of Cheap Tobacco are everywhere )... But profit margin is very Thin ( waste management time )
A company was fined RM2,500 at the Magistrates’ Court here for selling tobacco products online in violation of Rule 10A (1) of the Control of Tobacco Products Regulations 2004.
Health director-general Datuk Dr Noor Hisham Abdullah in a statement today said monitoring and investigation by the Health Ministry found that the company had been selling various brands of tobacco products online for as low as RM20.
Selling online is not only against the regulations, but it has thwarted the government's intention to restrict the availability of tobacco products, especially among the youth under 18
Dr Noor Hisham said the selling of tobacco products online should be controlled so that the public, especially teenagers, cannot buy or possess tobacco products easily and make room for cigarette availability which makes smoking prevalent among adolescents. The Health Ministry views this matter seriously and will continue to take stern action
when suddenly AffinHwang give Tp.....it means they are collecting. BAT is a illiquid stock, most Security Houses avoid this counter unless it is very cheap
JJchan. I know AffinHwang tactics. First management buys, then they write internal report to their stockbroker clients. When 200--300clients buy, sure price goes up, immediately cemented their correct recommendation. 9yrs account in AffinHwang
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
BATFLY
722 posts
Posted by BATFLY > 2020-06-29 21:04 | Report Abuse
Obviously this is a good dividend stock.. 9.6% dividend yield and 90% dividend policy.. Goldbaby