BTI Stock Recent News

Investors love dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant total return potential.

With markets at highs, I see potential for a rotation into value and high-yield dividend stocks as investors seek safety. I highlight four dividend stocks I'd hold for ten years purely for their yield, if needed, not for share price appreciation. The stocks are diversified across four industries and yield a combined 5.4%, with an extremely strong likelihood of small and continued dividend increases over the next decade.

I reiterate my buy rating on British American Tobacco despite the recent price surge. I see new catalysts from its most recent trade update to balance out the price surge. The top catalyst is the new category of products, which I expect to drive future growth and margins.

Dividends can provide you with stable income through all market environments. Today, the broad market S&P 500 index has a tiny dividend yield of 1.2%, which is significantly less than what you can earn through buying United States Treasury bonds.

BTI's rally has occurred relatively fast and furious, underscoring the bullish market sentiments surrounding its new category reversal after the prior expensive write-downs. Much of the tailwinds are attributed to Vuse's market leadership and Velo's growing volume/market share in the US, implying its robust vaping/oral approaches. This is aided by the new category's positive gross margins, with it likely to drive bottom-line expansions despite the growth headwinds arising from the illicit market and combustibles secular decline.

Ultra-high-yield dividend stocks are a favorite among investors for good reason.

I present my top 10 high-yield dividend stocks for July 2025, screened for strong yields, large market caps, and attractive valuations. The list includes Chevron, Pfizer, PepsiCo, Ares Capital, BB Seguridade, LVMH, Altria, Verizon, TotalEnergies, and Merck, each offering income and growth potential. Blending high-yield and dividend growth stocks can boost annual income and reduce portfolio volatility, aligning with The Dividend Income Accelerator Portfolio Strategy.

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 4.3%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 9%.

British American Tobacco offers strong capital returns, driven by robust free cash flow and a low earnings-based valuation, making it a compelling value investment. Momentum in alternative products like Velo is offsetting declines in traditional tobacco, supporting future growth in a challenging market. Aggressive marketing and ambitious medium-term goals in smoke-free products position BTI for sustained top line and earnings momentum.

BTI's Glo Hilo heated tobacco device rollout has disappointed, with lackluster performance and unclear management communication raising concerns about its competitive potential. Nicotine pouches, especially Velo Plus in the US, are showing explosive growth and high margins, positioning British American Tobacco for strong future profitability in this segment. Despite challenges in new products, the Company remains attractively valued with a low P/E ratio and a robust 7% dividend yield, providing a margin of safety.