On August 8, 2023, I bought additional 2 shares of British American Tobacco (NYSE: BTI) stock, paying $32.71 per share for our long-term dividend stock portfolio
British American Tobacco plc is a British multinational company that manufactures and sells cigarettes, tobacco and other nicotine products. The company, established in 1902, is headquartered in London, England. As of 2021, it is the largest tobacco company in the world based on net sales.
We are now holding 4 shares of BTI in our stock portfolio.
With its yearly dividend of 2.38 dollars per share, this latest buy has a dividend yield of 7.27% and will pay us an additional $4.76 every year (after tax). Awesome! BTI is paying a dividend in the following months: February, May, August, and November
Using dollar-cost averaging our average cost per BTI share is $33.40
To finance this purchase I was actually selling a put option, and bought this stock from the premium received. See: Rolled Forward and Down 1 Put option on BTI – 4.6% potential income return in 218 days (7.68% annualized)
96 shares to go once we will be able to start selling covered calls and generate extra income from BTI stock. I don't have a set time frame when to get there, as I'm planning to buy these stocks from the put options premiums. It could take some 2-3 years once I will get there, or much sooner if the stock will get assigned.
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