Is British American Tobacco Stock's 8% Dividend Yield Safe?

By Parkev Tatevosian, CFA – Jul 25, 2023 at 4:15AM

NYSE: BTI

British American Tobacco

Market Cap

$65B

Today's Change

(-0.51%) -$0.15

Current Price

$29.25

Price as of April 26, 2024, 4:00 p.m. ET

Passive income investors are understandably attracted to the solid dividend yield.

Fool.com contributor Parkev Tatevosian evaluates British American Tobacco's (BTI -0.51%) critical financial metrics to determine if the dividend payment is safe for the long term.

*Stock prices used were the afternoon prices of July 22, 2023. The video was published on July 24, 2023.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and recommends the following options: long January 2024 $40 calls on British American Tobacco P.l.c. and short January 2024 $40 puts on British American Tobacco P.l.c. The Motley Fool has a disclosure policy.

Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.