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Reading: A High-Yield Dividend Stock with Defensive Strength
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24x7Report > Blog > Finance > A High-Yield Dividend Stock with Defensive Strength
Finance

A High-Yield Dividend Stock with Defensive Strength

Last updated: 2025/07/27 at 9:00 AM
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A High-Yield Dividend Stock with Defensive Strength
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British American Tobacco p.l.c. (NYSE:BTI) is included among the many Top 10 Safest Dividend Stocks in the UK.

British American Tobacco (BTI): A High-Yield Dividend Stock with Defensive Strength
British American Tobacco (BTI): A Excessive-Yield Dividend Inventory with Defensive Energy

A detailed-up of an array of tobacco merchandise, emphasizing the choice and shopper selection.

British American Tobacco p.l.c. (NYSE:BTI) is among the many finest FTSE dividend shares. Much like its trade friends, the corporate is closely targeted on shifting in the direction of next-generation merchandise. What units BAT aside is its world attain, providing traders publicity to the worldwide tobacco market slightly than being restricted to simply the US or worldwide markets alone. Its product lineup spans conventional cigarettes, vaporizers, heated tobacco, and smokeless choices like chewing tobacco. For these trying to put money into the broader tobacco sector, BAT gives a simple, all-in-one entry level by a single inventory.

In July, Jefferies started overlaying British American Tobacco p.l.c. (NYSE:BTI) with a Purchase ranking, deciding on it as their prime choose inside the tobacco trade. The agency pointed to the corporate’s rising profitability in its conventional combustibles section as a key driver supporting its progress in increasing into smoke-free merchandise.

Analysts additionally highlighted British American Tobacco p.l.c. (NYSE:BTI)’s robust monetary place and strong money returns, whereas suggesting that there’s nonetheless potential for margin enchancment. From a valuation perspective, the inventory was thought of interesting, buying and selling at a 35% low cost in comparison with different tobacco companies — a spot Jefferies expects may shut over time.

British American Tobacco p.l.c. (NYSE:BTI) has raised its payouts yearly since 2018. The corporate gives a quarterly dividend of $0.7391 per share and has a dividend yield of 5.8%, as recorded on July 25.

See also  JetBlue Airways, Meta, Sweetgreen and more

Whereas we acknowledge the potential of BTI as an funding, we consider sure AI shares supply larger upside potential and carry much less draw back threat. Should you’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the best short-term AI stock.

READ NEXT: 14 Stocks That Paid Special Dividends in 2025 and Dividend Champions vs Aristocrats: 12 Under-the-Radar Stocks to Buy

Disclosure: None.

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TAGGED: defensive, Dividend, HighYield, stock, strength

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