British American Tobacco Outshines Philip Morris As A Dividend Buy

(12min)

Summary

  • Ongoing trade and macroeconomic uncertainties could create earnings headwinds for British American Tobacco and Philip Morris.
  • The more uncertain the times are, the more I learned to emphasize return drivers that are lest subject to ambiguity.
  • Dividend payouts are a much more accurate metric for PM and BTI’s true economic earnings.
  • Examined via the window of dividends, BTI is a better-rounded investment than PM thanks to its higher yield, better valuation, lower payout, and stronger buyback programs.
  • Looking for more investing ideas like this one? Get them exclusively at Envision Early Retirement. Learn More »
Declining graph made of cigarettes

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BTI vs. PM stock: Previous thesis and new developments

I last wrote on British American Tobacco (NYSE:BTI) in April and Philip Morris International (NYSE:PM) in March. My last BTI article was titled "British American Tobacco Needs Time

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This article was written by

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Sensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets.

Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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