British American Tobacco: 3 Reasons to Look Beyond the Yield Before You Buy the Stock
British American Tobacco (NYSE: BTI) is one of the world's largest cigarette makers. That places the company in the consumer staples sector, since cigarette smokers tend to keep buying cigarettes no matter what the economic environment looks like. Being in this sector might make the stock's huge 7.5% dividend yield sound appealing.Here are three reasons why you should be cautious.The big reason to worry about British American Tobacco's future is directly related to its most important product, cigarettes. This business accounts for roughly 80% of the company's revenue. That's a huge number and it creates some notable problems for investors to consider.Continue reading
British American Tobacco (NYSE: BTI) is one of the world's largest cigarette makers. That places the company in the consumer staples sector, since cigarette smokers tend to keep buying cigarettes no matter what the economic environment looks like. Being in this sector might make the stock's huge 7.5% dividend yield sound appealing.
Here are three reasons why you should be cautious.
The big reason to worry about British American Tobacco's future is directly related to its most important product, cigarettes. This business accounts for roughly 80% of the company's revenue. That's a huge number and it creates some notable problems for investors to consider.
