Could British American Tobacco's Shift from Cigarettes Lead to Wealth Creation?
Getting British American Tobacco's bad news out first
British American Tobacco (NYSE: BTI) has a massive 9.9% dividend yield. The company's core business, cigarettes, faces a declining demand, leading to production decreases and accounting adjustments suggesting the business's terminal decline.
British American Tobacco has time, but how much?
The company aims to generate 50% of revenue from noncombustible products by 2035. Transitioning to new categories like vapes and heated tobacco reflects positive progress but carries risks for conservative investors.
British American Tobacco is high-risk/high-reward
With potential for millionaire-maker gains, the company's diversification efforts may generate returns for investors, especially when considering the substantial dividend yield. However, uncertainties remain, emphasizing the need for a cautious approach to investing.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.