British American Tobacco facing challenges with declining cigarette volumes and uncertain dividend sustainability.

From Nasdaq: 2024-12-28 18:00:00

British American Tobacco (NYSE: BTI) is a risky consumer staples stock with a dividend yield of 8.2%, driven primarily by its cigarette business. Cigarette volumes have been declining steadily, with a 6.8% decrease in the first half of 2024. The company is trying to offset this decline with price increases and new businesses like nicotine pouches. However, the long-term sustainability of its dividend and business model is uncertain due to these challenges. Investors should proceed with caution when considering British American Tobacco as an investment option.



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