Latest news with #BritishAmericanTobacco
Yahoo
4 days ago
- Business
- Yahoo
Here's how a 39-year-old could aim for a million by retirement, by spending £900 a month on UK shares
Retirement creeps up on many people but the best time to start thinking about it from a financial planning perspective is far in advance. Tucking money away regularly in blue-chip UK shares is a relatively simple but potentially powerful method many people use to try and prepare for their retirement, even if it is decades in the future. To illustrate, imagine a 39-year-old with not a penny in the stock market today turning a new leaf this week. They set up a regular contribution of £900 each month into a diversified portfolio of carefully chosen UK shares. If that portfolio compounds at 8% annually, by the time they reach 67 (soon to be the state retirement age), their portfolio will be worth over £1m. Compounding is a simple but powerful financial force multiplier In that example, I discussed compounding at 8% annually. Understanding this concept helps when assessing the potential credibility of such an approach. Here, compounding means the whole portfolio growing at an annual rate of 8% on average each year (some years will be better than others, in reality). That can be from dividends. It can also be from share price growth. Then again, share price declines would eat into the return – and dividends are never guaranteed. Contrast two UK shares. British American Tobacco yields 6.2% — and its share price has grown 38% over the past five years. That comfortably hits the 8% target. By contrast, JD Sports yields just 1.2%. Its share price has fallen 34% in five years. That falls far short of the target. Past performance is not necessarily a guide to what will happen in future, of course. By choosing the right mixture of UK shares, though, I see an 8% compound annual growth rate as a realistic target. Looking to the future One UK share I think investors ought to consider in this context is packaging and janitorial product supplier Bunzl (LSE: BNZL). The FTSE 100 share yields 3.2% but its share price growth over the past five years has been a measly 2%. Crucially, though, that includes a recent price crash. The Bunzl share price is down 32% since February. Revenues have been declining over the past couple of years. Net profit last year also fell. The company continues to navigate risks including the impact of tariff disputes on its supply chain and weak demand in some markets. But while it may not seem like much of a growth play right now, Bunzl's business model has long been growing through acquisition, offering economies of scale. The wider its product range and international reach, the more compelling Bunzl's offering should be for its target customer base. Despite recent wobbles, I think that business model has long-term legs. Moving from dreaming to action Putting £900 a month aside is well within the annual ISA allowance. So an investor may want to choose a competitive Stocks and Shares ISA as they try to build wealth. Alternatively they may be eyeing a different investment vehicle for retirement, such as a Self-Invested Personal Pension (SIPP). Whatever the route, building any wealth will require taking some action — not just dreaming about it. The post Here's how a 39-year-old could aim for a million by retirement, by spending £900 a month on UK shares appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has positions in Bunzl Plc and JD Sports Fashion. The Motley Fool UK has recommended British American Tobacco P.l.c. and Bunzl Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mirror
6 days ago
- Business
- Daily Mirror
Top British firms donated to Republicans who denied 2020 US election result
Our investigation reveals that 24 firms with UK HQs have given over £1m to Republicans who questioned the 2020 election that Trump lost - sparking the January 6 insurrection at the Capitol More than 20 of Britain's biggest companies have donated to over 100 Republican politicians in the US who refused to certify the 2020 presidential election, The Mirror can reveal. BAE Systems, Rolls-Royce, Deloitte and British American Tobacco are among 24 UK headquartered-firms that have donated more than $1.7 million (£1.3m) to election-denying candidates since 2021 through in-house bodies which collect donations from staff. The donations come through the firms' Political Action Committees or PACs, which are often run by senior company execs and which channel staff donations to politicians. Under US law, companies are not allowed to donate directly and the companies contacted for comment stressed that their PACs operate independently and comply fully with US campaign finance rules. Employees of companies donate money to a PAC, companies themselves are not allowed to do so, but they do often pay for office costs such as rent, staff and fundraising activities. Employees who contribute to their firm's PAC can specify if they want the money to go to Republicans or Democrats and the PAC generally goes on to bankroll politicians or candidates who are viewed as supportive of their industry. These donations were made despite many of the largest corporations pledging not to donate to election denialists after the Jan 6 insurrection in which supporters of Donald Trump stormed the Capitol. Firms who have PACs supporting Republican candidates we established in our joint investigation with the Democracy for Sale Substack include: Accountancy firm PricewaterhouseCoopers, who announced in January 2021 that it had 'suspended all political contributions to any member of Congress who voted to object to the certification of electoral votes' but its Political Action Committee has given $93k to a string of GOP candidates who refused to certify the election. PwC did not respond to a request for comment. British American Tobacco's US subsidiary's PAC has donated to Andrew Clyde who claimed the Capitol Riots looked more like a 'normal tourist visit' and voted against giving medals to police officers who responded to the riots. A BAT spokesperson said: 'It is a well-established practice in the U.S. political system for individuals, not-for-profits and private sector companies to make financial contributions to major political parties. BAT believes that engaging in the political process is an important way for us to advocate for policies that support our industry and overall economic growth.' The PACS of several firms including Deloitte, BAT, advertising giant WPP contributed to Steve Scalise, who spoke at a white nationalist conference with former KKK head David Duke. The PACs of firms including Deloitte, Rolls Royce and BAE have funded house speaker Mike Johnson, who played a leading role in attempts to overturn the 2020 election result, according to the New York Times. He voted against the Respect for Marriage Act in 2022, which federally protects same-sex marriages and interracial couples, and has said that America can only be saved it it returns to "eighteenth-century values". Defence firm BAE Systems announced in January 2021 that, 'In response to the deeply disturbing violence at the US Capitol on January 6th, our US political action committee has suspended all donations while we assess the path forward'. However, since then BAE Systems's PAC has donated $229,500 to Republicans who have refused to certify the 2020 elections, starting in April 2021. BAE Systems said: 'We do not make corporate contributions or donations to political parties. Eligible employees in the US can choose to contribute to the BAE Systems Political Action Committee, which must operate in full compliance with US federal laws and regulations.' After his re-election, President Trump has pardoned or commuted sentences for every defendant convicted for their roles in January 6, including those convicted of violence against Capitol police and the leaders of extremist groups. In the US, foreign companies are not allowed to donate to politicians but, if they have an American subsidiary, they can donate through so-called PACs. PACs are lobbying organizations that make campaign donations to political candidates. Big companies have PACs that are often headed by a company executive, or someone working for them. The Treasurer of the Deloitte PAC is Patrick Givens, a Deloitte employee for the last 17 years. The Treasurer of the BAT's US subsidiary Reynolds' PAC, is Steve Kottak, a BAT/Reynolds employee for the last 21 years who is currently senior director in state and local government relations. The Treasurer of the PwC PAC is Roz Brooks, A PwC employee for the last 29 years. The amounts that PACs can give to a candidate are limited to no more than $5000 for the primary and another $5000 for the election itself. Some British-listed companies have donated huge sums to Republican causes. British American Tobacco gave more than $25m to conservative causes in 2024, including $10m to Make America Great Again PAC, Open Secrets has previously revealed. Christopher Avery, Director at the campaign group Donations and Democracy, said: "It is exceptionally disappointing that so many major UK companies have subsidiaries whose Political Action Committees have been directly funding the campaigns of politicians after they tried to overturn the results of a democratic election in the United States. Making donations to those politicians raises serious concerns about respect for democracy, human rights and the rule of law."
Yahoo
6 days ago
- Business
- Yahoo
Low P/E ratios and 6%+ dividend yields! Could these FTSE 100 shares be irresistible?
Could these dirt-cheap FTSE 100 shares be too cheap to miss? Let's take a look. British American Tobacco Tobacco stocks like British American Tobacco (LSE:BATS) are famed for their robust dividends. The company's highly addictive products provide a reliable flow of cash over time typically distributed through a generous passive income. For 2025, this particular Footsie operator's dividend yield is 6.4%. However, cigarette manufacturers face strict regulatory restrictions that have pushed their valuations through the floor. British American Tobacco shares now trade on a forward price-to-earnings (P/E) ratio of 11.2 times. Historically, Big Tobacco company multiples would sit in the mid-to-high teens. Widescale rules on the sale, marketing, and usage of their products have hammered their volumes (British American's own stick sales dropped 5.2% in 2024). Legislators are showing no signs of cooling their attack on tobacco, either. And, regulators are taking greater interest in new nicotine technologies like BATS' Vuse vaping sticks on growing concerns over their addictive qualities and health implications. Another danger is the rapid growth of illegal vapour products, and especially in its key US market. This in large part prompted British American to abandon its revenue target of £5bn for its new categories by 2025. All this being said, the company has shown remarkable resilience despite these challenges. Stick volumes are holding up better than the broader industry. And pricing remains robust, thanks to heavyweight labels like Lucky Strike and Newport. These prompted British American to raise annual sales growth forecasts, to 1%-2%, and propelled its share price to seven-year peaks. Yet, I fear this resurgence in investor confidence could prove temporary given those enormous market challenges. It's why I'd rather target other cheap UK shares. M&G M&G (LSE:MNG) is another FTSE 100 share facing significant threats. In fact, the highly cyclical nature of its operations — selling discretionary savings and investment products and services — may leave it more vulnerable in the near term than tobacco manufacturers. It also has to paddle extremely hard to thrive in an intensely competitive marketplace. Legal & General, Aviva, and Aberdeen are some of many rivals in the UK alone that endanger its top line and operating margins. But M&G is no minnow, and has significant brand power and seriously deep pockets. Its Solvency II capital ratio was 223% as of December, up 200 basis points year on year. This gives it significant opportunities to raise earnings, as rising awareness of financial planning and a steadily ageing global population supercharge market growth. Analysts at Global Market Insights think the asset management market — a sector from which M&G derives the lion's share of earnings — will grow at a stunning annualised rate of 29.9% between now and 2034. Like British American Tobacco, M&G's share price has also rocketed in recent months. But I believe strength here looks far more sustainable. And what's more, the financial services giant still offers excellent all-round value. Its forward P/E ratio is 10.4 times, and its dividend yield is 8%, more than double the FTSE 100 average. I think it's one of the best value UK large-cap shares to consider right now. The post Low P/E ratios and 6%+ dividend yields! Could these FTSE 100 shares be irresistible? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Aviva Plc and Legal & General Group Plc. The Motley Fool UK has recommended British American Tobacco P.l.c. and M&g Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Build Your Dividend Dream: 3 High-Yield Stocks to Buy Now
British American Tobacco is seeing an inflection in growth with its new nicotine brands. PepsiCo's rising dividend yield gives you a cheap entry point to buy the stock. Altria Group's sky-high dividend yield can help pay you income for many years. 10 stocks we like better than Altria Group › Dividends can provide you with stable income through all market environments. Today, the broad market S&P 500 index has a tiny dividend yield of 1.2%, which is significantly less than what you can earn through buying United States Treasury bonds. So what is the best way for stock investors to add dividend income to their portfolios? There are still plenty of stocks out there that can help you build your dividend dream. Here are three high-yield dividend stocks that can turn your portfolio into an income machine. One of the best-performing stocks of 2025 has been what some may call a stodgy tobacco giant: British American Tobacco (NYSE: BTI). The owner of an international portfolio of cigarette brands such as Camel, Lucky Strike, and American Spirit is up 40% year to date. It currently has a dividend yield of around 6% despite these massive gains. Investors have not fallen in love with British American Tobacco because of its cigarette business. Volumes in the United States have fallen aggressively in recent years, leading to stagnant revenue growth. Global volumes are not nearly as bad -- expected to fall 2% in 2025 -- but it is still a declining market headed for the dustbin of history. No, investors are all over British American Tobacco because of its growth in new nicotine categories such as vaping, nicotine pouches, and heat-not-burn cigarettes. Nicotine pouches are on fire at the moment, a category that is seeing rapid global adoption. The company's Velo brand has an estimated 30% market share of nicotine pouches globally in its key markets, with United States revenue growing in the triple digits at the moment and hitting an estimated 12% market share in the country. As investors have seen with the leading nicotine pouch brand Zyn owned by Philip Morris International, these are highly profitable products that can help replace cash flows lost from cigarettes. At a dividend yield of 6%, investors are in a sweet spot with British American Tobacco right now. Sit tight and watch the growing income hit your portfolio every year. There are a lot of high dividend yields in the consumer goods space, including at PepsiCo (NASDAQ: PEP). The owner of Pepsi and Frito-Lay snack foods has hit a dividend yield of 4% after its stock entered a 30% drawdown. Shares are down because of slowing volume growth for its brands around the world, with fears that popular weight loss drugs like Ozempic are the cause of reduced demand for soda and snack foods. Despite these fears, PepsiCo is projecting organic revenue -- which excludes acquisitions and divestitures -- to be up in 2025, as these brands typically enjoy a lot of pricing power. While the weight loss drugs do present a headwind to PepsiCo, it is the historical pricing power of snack foods that will help the company keep growing its earnings in the years to come. Over the last 10 years, Pepsi's dividend per share has grown a cumulative 100%. Today, you can buy the stock at its highest dividend yield of the last 10 years. Despite these weight loss drug fears, I believe that these brands such as Lays, Tostitos, and Mountain Dew that have stood the test of time over decades will continue to earn a ton of profits for shareholders. This drawdown gives investors a prime opportunity to buy the dip on PepsiCo stock. The highest dividend yield on this list belongs to another tobacco stock: Altria Group (NYSE: MO). This is the America-focused tobacco company that owns Marlboro cigarettes, the leading premium brand in the country. Shares currently trade at a dividend yield of 7%, one of the highest in the entire stock market. As mentioned above, cigarette volumes in the United States have started falling at a quick pace. Unlike British American Tobacco, Altria Group has struggled to gain momentum with its forays into new nicotine categories. The vast majority of its profits still come from cigarettes. However, this decline has not affected the company's ability to generate a profit. Through price increases, Altria is able to counteract volume declines with margin expansion on remaining sales, leading to operating income growth of 1% last quarter. It is returning capital to shareholders through share buybacks, which have brought shares outstanding down by 15% in the last 10 years. Through these buybacks and fewer shares outstanding, Altria Group will be able to keep growing its dividend per share (and therefore dividend yield) because there are fewer remaining shares to make a payment to. Cigarettes are declining, but not going away entirely anytime soon. Even with volume declines prevalent, Altria Group can remain a steady income payer with its sky-high dividend yield of 7%. Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Altria Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy. Build Your Dividend Dream: 3 High-Yield Stocks to Buy Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
How long does it take to turn £20,000 into a £1,500 a year second income?
Turning £20,000 cash into a £1,500 annual second income requires a return of 7.5% a year. And there are a number of FTSE 100 stocks that can make this happen almost immediately. These are shares in companies that are big, well-established, and have been around for a long time. And in some cases, they're still growing even today. One of the nice things about the FTSE 100 is there are a number of stocks with high dividend yields. So investors looking for a 7.5% yield don't have to risk it all on just one company. There are life insurance firms, tobacco businesses, housebuilders, and mining companies. These are from different industries and have operations all around the world. With a bit of weighting, it's possible to build a reasonably well-diversified portfolio of FTSE 100 stocks that offers a 7.5% dividend yield. Examples are: Stock Portfolio Weight Dividend yield Weighted yield Legal & General 30% 8.49% 2.55% Taylor Wimpey 27% 8.4% 2.27% British American Tobacco 25% 6.48% 1.62% BP 18% 6.07% 1.09%7.53% This is based on the most recent shareholder distributions. But dividends are never guaranteed and companies can – if they want to – decide to reduce, suspend, or cancel returns to investors. One example is Taylor Wimpey (LSE:TW) — the stock I think investors interested in FTSE 100 housebuilders should be looking at. The company's profits tend to fluctuate quite a bit as changes in interest rates affect demand for mortgages – and therefore, houses. This shows up in the company's sales and profits. Since 2022, both revenues and earnings per share have fallen and it's no accident this has coincided with a period of higher interest rates. Unusually however, that's not the main thing for Taylor Wimpey shareholders to pay attention to. The firm's dividend policy's based on its net assets, rather than the cash it generates. That makes it a more resilient income stock than some other UK builders. But it doesn't protect the dividend indefinitely – and May's distribution was lower than the previous year. This is why investors – even ones focused primarily on passive income – need to consider a company's long-term prospects. And there are reasons to be optimistic about Taylor Wimpey. Most obviously, it operates in a market where demand's set to be strong for a long time. The UK has a big shortage of housing and this isn't going to change any time soon. The dividend might be higher or lower in any given year, but I expect the fluctuations to be less dramatic than some of its competitors and that makes it worth considering. High dividend yields are, as a rule, a sign investors are concerned about the company's long-term prospects. And while I think this can be justified, Taylor Wimpey looks unusually resilient to me. In general, the FTSE 100's made up of businesses that have been around for a long time. And that means they are – by definition – relatively successful. There are always things that can go wrong and some stocks are clearly riskier than others. But the UK stock market's where I think investors trying to generate a second income should look. The post How long does it take to turn £20,000 into a £1,500 a year second income? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco P.l.c. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
