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British American Tobacco grows non-traditional products, offers 5%+ dividend, trades at discount to peers

Analyst Insights
26 Jun 2026
Seeking Alpha
View Source
Bullish
pluang ai news

British American Tobacco is rapidly expanding its non-traditional nicotine products like Velo pouches, gaining strong adoption especially among younger users. The company offers an attractive dividend yield above 5% and is actively returning capital to shareholders through stock buybacks, boosting total returns. Trading at a forward P/E of 11.7, BTI is valued lower than its industry peers, providing a margin of safety for investors. Its growth in new product categories and robust capital returns could lead to share price revaluation and sustained earnings growth.

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