I basically turned cigarettes into free shares and dividends… and no, I don’t even smoke.
The Trade Recap
- Buy: 10/1/2020 — 42 shares of BTI at $34.99 → $1,469.53 invested
- Sell (partial): 09/23/2025 — 28 shares at $53.31 → $1,492.68 recovered
- Leftovers: 14 shares that cost me exactly $0 (a.k.a. “free shares”) and are worth $733.04 today
- Dividends: about $120/year received since October 2020
Mission accomplished: I got my initial capital back and I now own 14 shares for free.
👉 This is exactly how the Up-40% Free Stock Strategy works: sell enough to recover your investment, keep the rest for free, and let time (and dividends) do their thing.
Why BTI Looked Like a Smart Pick Back in 2020
1. The Dividend Yield Was Juicy 🍇
- Around 7 %+ in 2020, back when your savings account paid you about $0.12 a year.
2. Valuation Was Reasonable
- Mid-20s P/E for a defensive consumer staple giant = not glamorous, but not overpriced either.
3. Stability and Cash Flow (Boring Is Beautiful)
- BTI’s business was boring but reliable, with brands, pricing power, and steady demand.
4. Built-in Downside Buffer
- Even if the stock price snoozed, that yield was a comfy cushion.
5. Macro Mood in 2020
- In a shaky, pandemic-era market, a “boring dividend cow” like BTI felt oddly reassuring.
Why the Strategy Worked
The magic wasn’t the stock, it was the discipline:
- Sell enough to recover capital ✅
- Keep the leftovers ✅
- Collect dividends ✅
Now my cost basis is zero — my favorite number after “dividends per share.”
A Little Self-Teasing
Yes, I was that guy who thought: “What the world needs right now is a tobacco stock.”
But hey — it worked.
Now every time dividends hit my account, I grin:
“I literally turned cigarettes into passive income. Mom would be proud… or horrified.”
Wrap-Up
The BTI trade is a perfect example of the Up-40% Free Stock Strategy:
- Enter with a reasonable valuation
- Wait patiently
- Sell to recover your money
- Keep the free shares for the long ride
So now I own 14 shares worth $ of British American Tobacco that cost me nothing. Whether they grow, shrink, or just puff out dividends — it’s all upside from here.
BUY, SELL, KEEP 
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