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Could Buying British American Tobacco Stock Today Set You Up for Life?


Published on 2024-12-19 23:21:18 - The Motley Fool
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  • British American Tobacco has a huge 7.9% dividend yield, which will attract income investors. Dividend lovers need to consider the risks of British American Tobacco's cigarette business. Whether or not the company can set you up with a lifetime of income depends heavily on whether it can find a replacement for cigarettes quickly enough.

The article from The Motley Fool discusses the potential investment in British American Tobacco (BAT) stock, highlighting both the risks and rewards. BAT has faced challenges due to declining cigarette sales, but it is actively transitioning towards a "Smokeless World" by investing in alternative nicotine products like vapes and heated tobacco. Despite a significant drop in its stock price, the company's shares now offer a high dividend yield of 9.6%, which could be attractive for income-focused investors. However, the article warns of the inherent risks, including regulatory pressures, potential dividend cuts, and the uncertain future of the tobacco industry. The author suggests that while BAT's strategy might pay off in the long term, the immediate future remains uncertain, making it a high-risk investment despite its appealing yield.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2024/12/19/could-buying-british-american-tobacco-stock-today/ ]
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