British American Tobacco p.l.c. (NYSE:BTI – Get Free Report) declared a quarterly dividend on Thursday, February 12th. Stockholders of record on Tuesday, December 29th will be paid a dividend of 0.8349 per share on Monday, February 8th. This represents a c) annualized dividend and a dividend yield of 5.6%. The ex-dividend date of this dividend is Tuesday, December 29th.
British American Tobacco has raised its dividend payment by an average of 0.0%per year over the last three years. British American Tobacco has a payout ratio of 66.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect British American Tobacco to earn $4.99 per share next year, which means the company should continue to be able to cover its $3.25 annual dividend with an expected future payout ratio of 65.1%.
British American Tobacco Stock Down 1.8%
Shares of BTI traded down $1.11 on Friday, reaching $59.50. The stock had a trading volume of 6,743,153 shares, compared to its average volume of 4,761,636. The company has a current ratio of 0.87, a quick ratio of 0.55 and a debt-to-equity ratio of 0.68. British American Tobacco has a 12-month low of $37.31 and a 12-month high of $63.03. The company has a 50-day simple moving average of $57.99 and a 200-day simple moving average of $55.84.
Key British American Tobacco News
- Positive Sentiment: Raised dividend and higher yield — BTI declared a quarterly cash dividend of $0.8349 (a 13% increase from the prior quarterly payout), implying a ~5.6% yield; the raise supports income-focused investor demand and signals board confidence in returns to shareholders.
- Positive Sentiment: Expanded buyback and results modestly beat — management increased the 2026 share buyback by £1.3bn and FY2025 results came in slightly ahead of forecasts (adjusted operating profit +2.3%), underpinning cash returns and EPS support. British American Tobacco edges past forecasts
- Positive Sentiment: Smokeless/vapor growth driving profit — demand for vapor and other smoke‑free products boosted pretax profit, supporting the company’s strategic shift away from combustible products. British American Tobacco Posts Pretax Profit Jump
- Positive Sentiment: Cost program and AI initiatives — management is reshaping costs (AI productivity push) and exiting South Africa to lift margins, plus a target of ~£2bn savings through 2030, which should help long‑term profitability. British American Tobacco Reshapes Costs With AI Push And South Africa Exit
- Positive Sentiment: Analyst upgrade — at least one analyst reversed stance and upgraded BTI to a Buy, citing renewed growth in the New Category (smokeless) and improving operational leverage. I Was Wrong, Growth Is Back (Rating Upgrade)
- Neutral Sentiment: Re‑rating discussion after strong run — some commentary is reassessing BTI’s valuation after a >50% one‑year return, which could cap further multiple expansion unless growth continues. Reassessing British American Tobacco’s Valuation
- Negative Sentiment: Revenue guidance below Street — FY2026 revenue guidance was updated to $35.1B vs. consensus around $36.0B, a miss that likely pressured the stock as it implies softer top‑line momentum.
- Negative Sentiment: Cash‑flow concern — analysts flagged a 37% YoY drop in operating cash flow for 2025, raising questions about the sustainability of continued dividend increases and buybacks if cash conversion doesn’t recover. British American Tobacco 2025 Earnings: Battleground United States
British American Tobacco Company Profile
British American Tobacco plc (BTI) is a multinational tobacco manufacturer and nicotine products company headquartered in London. Founded in 1902 as a joint venture to commercialize tobacco products outside the United States, the company has grown into one of the world’s largest tobacco firms with a long history in manufacturing and global distribution of combustible tobacco products.
BAT’s core business remains the manufacture and sale of cigarettes and other tobacco products under a portfolio of well-known consumer brands, including Dunhill, Lucky Strike, Pall Mall, Kent and Rothmans.
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