BTI Stock Recent News

Altria (MO 1.37%) and British American Tobacco (BTI 1.84%) both have attractively large yields, at 7.4% and 7.7%, respectively. By comparison, the S&P 500 index is only yielding 1.2% while the average consumer staples stock has a yield of roughly 2.7%.

British American Tobacco (BTI 1.84%) is one of the world's largest cigarette makers. That places the company in the consumer staples sector, since cigarette smokers tend to keep buying cigarettes no matter what the economic environment looks like.

Need investment income? Dividend stocks are obviously your best bet.

Hyperinflation and high interest rates make dividend-paying stocks attractive, providing cash flow and alleviating inflation pressure. Pfizer's 6% yield is appealing despite recent stock declines, with a low forward multiple and management's commitment to maintaining dividends. Cost savings and Haleon share sales should support Pfizer's dividend yield, with free cash flow expected to improve next year.

High dividend yields are a double-edged sword. On the one hand, you can get a sizable amount of cash back from these investments each year.

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields about 3.63%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.

British American Tobacco p.l.c.'s Q4 and FY 2024 earnings report indicates slow growth ahead due to various headwinds. But its total shareholder yield still makes it a solid hold. The stock's current dividend yield is about 7.8%.

Inflation erodes purchasing power, and retirees must maintain their lifestyle during their golden years. We emphasize deep diversification and reinvesting a portion of collected dividends to combat inflation and ensure growing income for a secure retirement. We discuss our top picks with up to 10% yields.

British American Tobacco is my largest stock investment that lies outside the traditional income areas such as BDCs, REITs, and midstream players. After the full 2024 report, BTI has dropped by ~10%. As a result of this, the P/CF has decreased accordingly, reaching 6.6x. The yield has bounced back to ~7.7%.

I downgraded my rating for British American Tobacco from a strong buy to a hold due to the slower than expected shift from combustibles to non-combustibles products. Combustibles still account for 80% of BAT's revenue, and I foresee a significant decline in volumes over the next decade, putting the current high dividend yield at risk. An 8% yield keeps investors in, but 10 year (dividend adjusted) returns underperform the S&P500 and peers like Philip Morris and Japan Tobacco.