Why British American Tobacco Is The Ultimate Inflation Hedge

Baronport Capital
1.55K Followers

Summary

  • British American Tobacco represents the ultimate inflation hedge and is set to benefit from the inflationary environment in several different and unique ways.
  • By being able to generate immediately accessible shareholder returns, push price hikes onto the consumers, and significantly deleverage its balance sheet, it might come out of inflation as a clear winner.
  • The tobacco giant is a well-structured, endurable, deep moat, free cash flow dividend-oriented machine that's grown to become a long-time income investor favorite.
  • The company is an undervalued free cash flow machine that manages to generate a generous 7.2% dividend yield and is perfectly positioned to weather the upcoming storm.

Young redhead woman smoking a cigarette in nature.

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British American Tobacco p.l.c. (NYSE:BTI) is a well-structured, endurable, deep moat, free cash flow dividend-oriented machine that's grown to become a long-time income investor favorite. The tobacco giant has kept a laser focus on generating lucrative and more

This article was written by

1.55K Followers
Baronport Capital offers independent equity research through a bottom-up fundamental approach from a long-term oriented value investor. He is passionate about investing and finance. He embraced the concepts and principles of value investing, an investment philosophy shaped by the written works and lives of Charlie Munger, Howard Marks, Seth Klarman, and other figures.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTI, WBD, EVRZF, CRSR, FB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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