British American Tobacco p.l.c. (NYSE:BTI) is included among the Top 10 Safest Dividend Stocks in the UK.
A close-up of an array of tobacco products, emphasizing the selection and consumer choice.
British American Tobacco p.l.c. (NYSE:BTI) is among the best FTSE dividend stocks. Similar to its industry peers, the company is heavily focused on shifting towards next-generation products. What sets BAT apart is its global reach, offering investors exposure to the worldwide tobacco market rather than being limited to just the US or international markets alone. Its product lineup spans traditional cigarettes, vaporizers, heated tobacco, and smokeless options like chewing tobacco. For those looking to invest in the broader tobacco sector, BAT offers a straightforward, all-in-one entry point through a single stock.
In July, Jefferies began covering British American Tobacco p.l.c. (NYSE:BTI) with a Buy rating, selecting it as their top pick within the tobacco industry. The firm pointed to the company’s growing profitability in its traditional combustibles segment as a key driver supporting its progress in expanding into smoke-free products.
Analysts also highlighted British American Tobacco p.l.c. (NYSE:BTI)’s strong financial position and solid cash returns, while suggesting that there is still potential for margin improvement. From a valuation perspective, the stock was considered appealing, trading at a 35% discount compared to other tobacco firms — a gap Jefferies expects could close over time.
British American Tobacco p.l.c. (NYSE:BTI) has raised its payouts every year since 2018. The company offers a quarterly dividend of $0.7391 per share and has a dividend yield of 5.8%, as recorded on July 25.
While we acknowledge the potential of BTI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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