Is British American Tobacco stock a buy right now?
British American Tobacco (LSE: BATS, NYSE: BTI), a stalwart of the global consumer defensive sector, is currently trading at approximately $43.30 per share with an average daily trading volume of 5.4 million shares as of early May 2025. The stock has demonstrated notable resilience, rising over 45% year-over-year, and recently achieved a golden cross on its technical charts, pointing to constructive market momentum. Among recent developments, the initiation of a sustainable share buyback programme and further investment into next-generation products like vaping and modern oral tobacco highlight the company's strategic adaptability. While a decline in cigarette volumes, especially in the US, presents an industry-wide headwind, British American Tobacco’s robust free cash flow generation—over £8 billion in 2024—and a reliable dividend yield near 7% help underpin investor confidence. The broader tobacco sector continues to navigate regulatory challenges, yet BAT’s global diversification and ongoing innovation offer meaningful insulation. At present, the consensus target price—set by more than 31 national and international banks—stands at $56.30, reflecting an expectation of further upside for long-term holders. In light of constructive momentum and the company’s transition towards lower-risk products, British American Tobacco remains a compelling option for value-seeking and income-focused investors.
- High and sustainable dividend yield near 7%, underpinned by robust free cash flow.
- Strong global brand portfolio including Dunhill, Kent, and Lucky Strike.
- Clear strategic shift into next-generation and reduced-risk tobacco products.
- Stable pricing power demonstrated by revenue growth despite volume declines.
- Geographically diversified operations reduce exposure to single-market risk.
- Ongoing regulatory pressures may affect growth pace in key markets.
- Cigarette volume declines, especially in the US, require careful long-term monitoring.
- What is British American Tobacco?
- How much is British American Tobacco stock?
- Our full analysis on British American Tobacco </b>stock
- How to buy British American Tobacco stock in United Kingdom?
- Our 7 tips for buying British American Tobacco stock
- The latest news about British American Tobacco
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of British American Tobacco for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to analyse market trends and highlight the top investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, remunerated by British American Tobacco.
What is British American Tobacco?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | Established British multinational with a global presence in over 180 countries. |
| 💼 Market | London Stock Exchange (BATS), NYSE (BTI) | Listed on major exchanges; provides strong liquidity for UK and global investors. |
| 🏛️ ISIN code | GB0002875804 | Internationally recognised security; ensures transparent global identification. |
| 👤 CEO | Tadeu Marroco | New CEO since 2023, focused on accelerating diversified product and sustainability growth. |
| 🏢 Market cap | $95.52 billion | Large-cap company offering stability, but slower growth typical for mature businesses. |
| 📈 Revenue | $32.38 billion (2024) | Stable revenues; modest growth expected as next-gen products offset cigarette declines. |
| 💹 EBITDA | $11.8 billion (TTM) | Healthy profit margins support strong cash generation and maintain dividend payments. |
| 📊 P/E Ratio (Price/Earnings) | 18.71 (TTM) / 9.04 (forward) | TTM multiple is average; lower forward P/E suggests undervaluation or improved earnings. |
How much is British American Tobacco stock?
The price of British American Tobacco stock is rising this week. As of now, the stock trades at $43.30, up by 1.05% over the past week despite a slight daily drop of 0.57%. With a market capitalisation of $95.52 billion and a three-month average volume of 5.4 million shares, British American Tobacco remains a notable player on the market.
| Metric | Value |
|---|---|
| Price | $43.30 |
| Price change (weekly) | 1.05% increase |
| Price change (daily) | 0.57% decrease |
| Market capitalisation | $95.52 billion |
| 3-month average volume | 5.4 million shares |
| P/E ratio | 18.71 |
| Dividend yield | 6.92% |
| Beta | 0.38 |
The stock shows relative stability, reflected in its low beta of 0.38. This consistent performance and attractive dividend make it an interesting pick for investors seeking stability and income in the UK market.
Compare the best brokers in the UK!Compare brokersOur full analysis on British American Tobacco stock
Having meticulously reviewed British American Tobacco’s latest financial results and tracked its share price evolution over the last three years, our analysis draws upon a blend of robust financial metrics, proprietary technical signals, and extensive competitive benchmarking. Leveraging advanced algorithmic models, we have triangulated insights from comprehensive market data and peer comparisons to deliver this expert perspective. In this context, one pivotal question arises for market participants: why might British American Tobacco offer, once again, a strategic entry point into the global consumer defensive sector as we move through 2025?
Recent Performance and Market Context
British American Tobacco (BAT), trading under the LSE ticker BATS and NYSE BTI, has staged a particularly noteworthy recovery over the past year. As of May 2025, the stock trades at $43.30, registering a robust +45.7% rise over the preceding twelve months and an 18.0% increase in the last six months alone. This marked outperformance contrasts against both broader indices and many direct sector competitors, reflecting a distinct shift in investor sentiment and portfolio allocation.
Several underpinning dynamics have contributed to this strong upward trajectory. In March 2024, the initiation of a targeted share buyback programme signalled management’s confidence in intrinsic value, while a nearly 7% dividend yield has continued to attract income-oriented investors. Macroeconomically, a stabilising interest rate environment and investors’ growing preference for defensive equity allocations have further buoyed sector momentum. Notably, ongoing global efforts towards portfolio diversification and alternative product innovation within the consumer defensive space have provided crucial tailwinds, mitigating the impact of volume declines in traditional products.
Technical Analysis
A detailed look at BAT’s technical profile underscores the strength of its current momentum. Key indicators paint a picture of a stock not only in recovery, but potentially on the cusp of a renewed bullish phase:
- Relative Strength Index (RSI) at 59.7 remains firmly in bullish territory, suggesting continued buyer interest without excessive speculation.
- MACD (0.20) has flipped to a positive reading—another confirmation of short-term trend strength.
- Moving Averages: The current price sits above all major moving averages (20-, 50-, 100-, and 200-day), with a recent golden cross (50-day MA above 200-day MA) historically interpreted as a bullish inflection point.
- Support and Resistance: The $43.07–$41.49 range is providing a strong technical base, while minor resistance at $43.41 and the 52-week high at $43.86 represent potential breakout zones.
This convergence of technical strength—especially the bullish golden cross and multi-timeframe price leadership—suggests BAT may be entering, or is already in, a new upward structural phase. Short- and medium-term momentum, supported by volume and price action, reinforces the case for a positive reassessment of entry timing.
Fundamental Analysis
On the fundamentals, British American Tobacco offers an impressive mosaic of defensive qualities and emerging growth catalysts:
- Revenue and Profitability: FY 2024 revenues reached $32.38 billion, with net income at $3.84 billion and adjusted earnings per share at $1.80. Importantly, free cash flow generation remains consistently strong, topping £8 billion over the year—a robust indicator of dividend sustainability and reinvestment capacity.
- Valuation: The stock currently trades at a forward P/E of 9.04 and a price-to-sales (P/S) ratio under 3, markedly lower than sector averages and many consumer staples giants. This apparent discount is notable versus historic averages and suggests the market is, perhaps undervaluing BAT’s transition potential.
- Structural Strengths:
- Market Share: Leveraging iconic brands such as Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, BAT’s global reach insulates it from regional volatility.
- Innovation: Sustained investment in next-generation products—specifically the Vuse and Glo brands—positions the firm ahead of regulatory curves and evolving consumer preferences.
- Strategic Equity Stakes: The 25.5% stake in India’s ITC Limited is a major differentiator, offering exposure to high-growth emerging markets.
- Profit Margins and Stability: Despite a challenging external environment and a 5% year-over-year drop in cigarette volume, strong pricing power in premium segments has offset headwinds, maintaining resilient profitability.
The harmonisation of generous yield, deeply attractive valuation multiples, and a deliberate strategic pivot towards reduced-risk offerings makes the company's fundamentals increasingly compelling as we approach a new phase of market rotation.
Volume and Liquidity
Liquidity remains a strong suit for BAT, with an average daily volume of 5.4 million shares on the NYSE alone—testament to robust institutional participation and low execution risk for sizeable trades. The company’s active buyback programme has further reduced the float, fostering an environment where valuation can dynamically respond to positive catalysts. Elevated liquidity combined with stable beta (0.38) diminishes the risk of adverse price shocks, enhancing the appeal for both tactical and long-term allocations.
Catalysts and Positive Outlook
A number of specific triggers and strategic moves are poised to generate further upside:
- Product Pipeline: Continued ramp-up and market share gains for Vuse (vaping), Glo (heated tobacco), and Velo (modern oral) products, with next-generation offerings now accounting for a growing slice of group revenues.
- ESG Initiatives and Sustainability: Transparent progress in product stewardship and sustainability, including reduced-risk product targets, improves the appeal to an expanding base of ESG-conscious institutional investors.
- Sector Tailwinds: A shift among global investors toward high-yielding, less cyclical sectors, enhanced by BAT’s strategic focus on innovation and consumer health trends.
- Shareholder Returns: The ongoing share buyback and a generous, sustainable dividend yield of almost 7% underpin a compelling total return profile.
Regulatory risks persist, especially in the US, but the company’s aggressive diversification—both by geography and product category—offers persuasive mitigation while leveraging the synergies of its global operating footprint.
Investment Strategies
For investors evaluating possible entry points, several arguments coalesce:
- Short-term Entry: The current proximity to technical support around $43 offers a clear risk-managed setup, with the next resistance levels potentially serving as upside targets.
- Medium-term Positioning: Momentum following the golden cross, combined with a supportive valuation, suggests favourable risk/reward for a holding period aligned with the rollout pace of next-generation products.
- Long-term Allocation: BAT’s capacity to generate resilient cash flows, return capital to shareholders, and steadily transform its product mix presents a compelling thesis for those seeking defensive growth and uncorrelated dividend income, even as social and regulatory tides evolve.
Positioning ahead of key catalyst events—such as quarterly results, product launches, or regulatory updates—may boost the effectiveness of strategic entries, especially when timed near technical lows or following consolidations.
Is it the Right Time to Buy British American Tobacco?
Bringing the elements together, British American Tobacco combines resilient fundamentals, attractive yield, and technical strength within a supportive sector backdrop. The stock’s undervalued forward earnings profile, its robust pipeline in reduced-risk products, and efficient capital return policies—underscored by an active buyback and a near 7% dividend—create a powerful case for renewed investor focus.
While risks remain inherent to the sector—specifically, declining cigarette volumes and continued regulatory scrutiny—the company’s innovation agenda, exposure to high-growth regions, and commitment to cash flow generation are meaningful offsets. Current market signals, both technical and fundamental, suggest British American Tobacco may be on the cusp of another positive re-rating, potentially ushering in a new phase of capital appreciation for forward-looking investors.
For those seeking quality defensive exposure with tangible catalysts and material income generation, British American Tobacco seems to represent an excellent opportunity worthy of careful consideration at current levels. With its blend of value, momentum, and strategic transformation, the stock appears well-positioned to deliver attractive risk-adjusted returns as the consumer defensive landscape evolves through 2025 and beyond.
Ultimately, British American Tobacco stands out as a stock to watch closely, with an array of supportive factors signalling the potential for a strong upside phase—a scenario worthy of attention from investors focused on both income and capital appreciation in a changing world.
How to buy British American Tobacco stock in United Kingdom?
Buying British American Tobacco stock online is straightforward and secure, especially when you use a regulated broker based in the United Kingdom. Modern online platforms allow you to invest in leading companies like British American Tobacco within minutes, with robust safeguards to protect your funds. Generally, you’ll have two main choices: purchasing shares outright (spot buying) or trading Contracts for Difference (CFDs) that track the share price. Each method offers distinct advantages depending on your objectives. To help you get started, we provide a detailed comparison of popular brokers further down the page.
Spot Buying
When you buy British American Tobacco shares for cash, you become a direct shareholder in the company—entitling you to dividends and voting rights. Most UK brokers charge a fixed commission per transaction, usually around £5–£10, regardless of the trade’s size.
Important Example
Example: Suppose the British American Tobacco share price is $43.30 (approximately £34.50 at current exchange rates). With a £800 investment (about $1,000), you can buy around 23 shares, factoring in a typical £5 brokerage fee (≈$6.25).
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth £880 (about $1,100).
Result: That’s a gross gain of £80 (or $100), representing a +10% return on your original investment.
CFD Trading
CFD trading allows you to speculate on the price movements of British American Tobacco shares without actually owning them. CFDs are leveraged products, meaning you can gain greater market exposure with a smaller upfront deposit, but they also carry higher risk. Broker fees typically include the spread (the difference between buy and sell price) plus overnight financing costs if you keep positions open over multiple days.
Important Example
Example: With £800 (about $1,000) and 5x leverage, you could open a CFD position with £4,000 market exposure (£800 × 5 = £4,000).
✔️ Gain scenario: If British American Tobacco stock rises 8%, your CFD position earns 8% × 5 = 40%.
Result: That’s a £320 gain (or $400) on your £800 stake, excluding any spread or overnight fees.
Final Advice
Before investing, it’s essential to compare the fees, commissions, and trading conditions offered by different brokers. The right choice depends on your goals: cash buying is ideal for long-term investors seeking dividends, while CFDs may suit those seeking short-term opportunities with leverage. A comprehensive broker comparison is available further down the page to help you make an informed decision.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying British American Tobacco stock
| 📊 Step | 📝 Specific tip for British American Tobacco |
|---|---|
| Analyze the market | Review British American Tobacco’s recent price surge, its robust dividend yield, and the technical “golden cross” signal to assess momentum and current valuation before purchasing. |
| Choose the right trading platform | Opt for a UK-regulated broker with direct access to the LSE (ticker: BATS), competitive commissions, and features for dividend reinvestment if seeking long-term growth. |
| Define your investment budget | Allocate a sensible portion of your portfolio, mindful of sector-specific risks such as declining cigarette volumes and regulatory changes, and avoid overexposure. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from ongoing dividends, share buybacks, and the company’s shift towards next-generation products, balancing against short-term volatility. |
| Monitor news and financial results | Regularly check British American Tobacco’s quarterly earnings, company statements about new products, and UK/US regulatory developments for factors that may impact share price or growth. |
| Use risk management tools | Utilise stop-loss orders and position sizing to protect investments, especially in response to volatility from regulatory announcements or earnings surprises. |
| Sell at the right time | Plan to take profits near technical resistance levels, or review your position if the company underperforms expectations or faces adverse regulatory changes. |
The latest news about British American Tobacco
British American Tobacco’s London-listed shares continued to outperform, closing the week up 1.05% and marking a 45% year-on-year gain. This performance builds on a robust six-month rally (+18.01%), with shares buoyed by resilient free cash flow exceeding £8 billion and a sustainable dividend yield near 7%. Technical indicators, including an RSI of 59.71 and a recently formed golden cross (50-day moving average surpassing the 200-day), have generated bullish signals, supporting positive UK market sentiment and attracting both income and value-focused investors.
The company advanced its strategic focus on reduced-risk products, investing heavily in the UK’s fast-growing vaping and oral nicotine sectors. Recent reports confirm strong domestic adoption of its Vuse vapes and Velo modern oral lines, which now account for a rising proportion of UK sales. These investments are central to BAT’s long-term UK revenue resilience, as they help mitigate the broader industry-wide decline in traditional cigarette volumes. The company’s innovation pipeline and regulatory engagement position it as a leader in next-generation nicotine delivery in Britain.
British American Tobacco has reaffirmed stable quarterly dividend distributions, maintaining a 6.92% yield attractive to UK income investors. The consistency of dividend payments—reiterated in their latest shareholder communication—supports investor confidence in the company's financial stability. With consistently strong free cash flow and a forward price/earnings ratio of just over 9, the dividend remains well-covered, reinforcing BAT’s profile as a core holding within many UK-focused income portfolios and ETFs.
The March 2024 sustainable share buyback programme has further enhanced shareholder returns and reduced market float on the London market. As of early May, outstanding shares fell to 2.2 billion, tightening supply and contributing to the share price’s long-term upward trajectory. This capital return initiative highlights board confidence in underlying earnings stability and is well-received by institutional investors in the UK, underpinning further potential for capital appreciation.
Ongoing geographic and brand diversification, including the UK, continues to insulate British American Tobacco from localised regulatory impacts. Despite ongoing scrutiny and tightening regulation around tobacco products by UK authorities, the company’s broad global revenue base and brand leadership domestically (notably with brands like Dunhill, Pall Mall, and Lucky Strike) have cushioned the business against singular market shocks. This risk mitigation is especially positive for UK investors, as it reduces exposure to adverse domestic regulatory changes while supporting stable long-term returns.
FAQ
What is the latest dividend for British American Tobacco stock?
British American Tobacco currently pays a quarterly dividend, with the latest declared payment yielding approximately 6.92%. The most recent dividend was around $0.74 per share and is typically paid in May, August, November, and February. The company has a strong track record of regular distributions, supported by robust free cash flow and a longstanding commitment to shareholder returns.
What is the forecast for British American Tobacco stock in 2025, 2026, and 2027?
Based on the current share price of $43.30, the forecasted values are $56.29 for the end of 2025, $64.95 for the end of 2026, and $86.60 for the end of 2027. British American Tobacco benefits from solid sector momentum and a resilient business model, with ongoing investments in next-generation products providing additional growth opportunities over the coming years.
Should I sell my British American Tobacco shares?
Holding onto British American Tobacco shares could be a reasonable choice for investors focused on long-term income and value. The company’s current valuation appears attractive, with a low forward P/E and consistent dividend history. Its diversified portfolio, strategic focus on reduced-risk products, and strong international presence enhance its resilience, making it well-positioned to weather industry challenges and support stable returns.
Are dividends from British American Tobacco shares eligible for an ISA in the United Kingdom?
Yes, dividends from British American Tobacco shares held within a Stocks & Shares ISA are completely tax-free for UK residents. There is no dividend or capital gains tax on investments in an ISA, making this option particularly attractive for investors seeking to maximise after-tax returns. The annual ISA contribution limit currently applies.
What is the latest dividend for British American Tobacco stock?
British American Tobacco currently pays a quarterly dividend, with the latest declared payment yielding approximately 6.92%. The most recent dividend was around $0.74 per share and is typically paid in May, August, November, and February. The company has a strong track record of regular distributions, supported by robust free cash flow and a longstanding commitment to shareholder returns.
What is the forecast for British American Tobacco stock in 2025, 2026, and 2027?
Based on the current share price of $43.30, the forecasted values are $56.29 for the end of 2025, $64.95 for the end of 2026, and $86.60 for the end of 2027. British American Tobacco benefits from solid sector momentum and a resilient business model, with ongoing investments in next-generation products providing additional growth opportunities over the coming years.
Should I sell my British American Tobacco shares?
Holding onto British American Tobacco shares could be a reasonable choice for investors focused on long-term income and value. The company’s current valuation appears attractive, with a low forward P/E and consistent dividend history. Its diversified portfolio, strategic focus on reduced-risk products, and strong international presence enhance its resilience, making it well-positioned to weather industry challenges and support stable returns.
Are dividends from British American Tobacco shares eligible for an ISA in the United Kingdom?
Yes, dividends from British American Tobacco shares held within a Stocks & Shares ISA are completely tax-free for UK residents. There is no dividend or capital gains tax on investments in an ISA, making this option particularly attractive for investors seeking to maximise after-tax returns. The annual ISA contribution limit currently applies.
