More Proof To Buy British American Tobacco
Over the last several weeks we’ve shown you several stocks to avoid during this pandemic. And several you should consider buying to Depression Proof Your Portfolio.
Back on July 10th 2020 I showed you 5 Reasons To Buy British American Tobacco as part of this portfolio we’re building.
You can view the full article by using the link above.
If you don’t want to do that now here’s a quick recap of why we recommend you buy its stock.
- Its 7% Dividend
- Its Enormous Profits
- Its Low Debt Levels
- The Coronavirus Won’t Harm Its Business
- Because It Was Cheap
These things combined make British American Tobacco (BTI) an incredibly safe and valuable pick to help you Depression Proof Your Portfolio during these uncertain times.
Investing in BTI will keep your investment safe for the reasons above.
But it’s more than that.
Investing in these kinds of stock will also help you earn potentially great investment returns owning its stock over the long term.
More proof of that came out on July 31st when BTI released its up to date financial information showing that both revenue and profits rose during the first half of 2020…
Even while we’re dealing with the worst economic crisis of our lifetimes.
And even while most other companies on Earth are getting hurt badly by this crisis.
BTI’s revenue grew 1.1% from $15.9 billion in the first half of 2019 to $16.1 billion in the 1st half of 2020.
And its operating profits grew 3.3% from $6.9 billion in the first half of 2019 to $7.1 billion in the first half of 2020.
These are both important, but the more important one is the growth in operating profits.
When operating profits grow the underlying value of the company grows over time. And this means the value of your shares will go up.
Even if its shares don’t reflect this in the short term.
Because over the long-term, value of stocks and even the entire market and economy are driven by increases in value. Not emotions and speculation like we’re dealing with today.
Plus, with revenues and operating profits increasing BTI should also be able to keep its dividend at its current high rate which should help you earn valuable income during this pandemic.
This is the power of these kinds of stocks.
They’ll not only help keep your investment capital safe during this enormous uncertainty.
But they’ll continue to thrive and grow in value because of their models.
There are few safe places to invest your capital today. And this number is growing smaller every day this crisis lasts.
The key to continue compounding your investments and build wealth is to keep investing well in great and cheap stocks over time.
Another huge part of this is staying away from terrible investments which is why we’ve recommended you stay away from many in recent weeks…
- 3 Reasons To Avoid American Airlines Stock
- The Most Dangerous Stock In The World
- 3 Reasons To Avoid Wynn Resorts Stock
- 4 Reasons To Avoid Norwegian Cruise Lines Stock
- 3 Reasons To Avoid Volkswagen
- 4 Reasons To Avoid Burlington Stores
- 4 Reasons To Avoid Plug Power
- 1 Reason To Avoid Cheniere Energy
EDITOR’S NOTE – These are only some of the stocks we’ve recommended you avoid in the last 2 months. If you want to view that full list you can go here.
And another huge part of this is having the ability and patience to buy and own great stocks over the long term.
These 3 things combined are how you build and compound your wealth over time.
- Buying great and safe investments at cheap prices
- Avoiding terrible investments and losing money.
- And holding onto the great stocks even in times of crisis to compound your capital over the long term.
These 3 reasons are also why we originally recommended BTI to you a few weeks ago.
And its also why we wanted to show you this further proof of why you should consider adding them to your portfolio as well.
If you want to see some of the other stocks we’ve recommended you buy to Depression Proof Your Portfolio use the following links.
- 3 Stocks That Will Earn You High Returns In The Coming Depression.
- One Thing To Do Today To Protect Your Investments
- 5 Reasons To Buy British American Tobacco
- 3 Stocks To Depression Proof Your Portfolio – Stock #1
- 3 Stocks To Depression Proof Your Portfolio – Stock #2
- 3 Stocks To Depression Proof Your Portfolio – Stock #3
- 4 Reasons To Buy Cummins To Depression Proof Your Portfolio
- 5 Reasons To Buy JM Smucker
- 5 Reasons To Buy General Mills
Disclosure – Jason Rivera is a 13+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above.