Where Will Ultra-High Yield British American Tobacco Be in 5 Years?

There's one very specific feature of British American Tobacco's (NYSE: BTI) stock that keeps investors interested: the dividend yield. At a time when the S&P 500 index is offering a tiny 1.2% yield and the average consumer staples stock 2.6%, British American Tobacco's yield is a lofty 8.1%."Wow" is a fair response to hearing about that return, but that huge yield comes with risks and long-term income investors need to think about what the future might look like here. Will this company offer such an enviable return in five years?British American Tobacco's name is fairly descriptive, given that it is one of the largest cigarette makers on the planet. Combustible products accounted for around 80% of revenue in the first half of 2024. That total includes both cigarettes and other things that, effectively, burn tobacco. Cigarettes accounted for roughly 98% of volume. So, while the company does other things, British American Tobacco is at its core a cigarette company.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool