The Finance Ghost: Dividends and discounts – a smoky tale of two strategies

British American Tobacco has lit up the scoreboard with a 44% rally, proving the power of dividends in tough times. Meanwhile, Remgro seems stuck puffing away at its INAV discount. If ever there was a time to swap cash dividends for buybacks, this is it.

This share price isn’t up in smoke

British American Tobacco has reaffirmed its earnings guidance at its AGM – well, before adjusting for currency movements, at least. This is despite all the recent chaos around tariffs and worries about economic growth, so that’s a helpful reminder of how defensive it is when people are addicted to your products.

For many investors, British American Tobacco just isn’t an option because of ethical reasons. Of course, ...
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