British American Tobacco

BTI

Market cap $125B

Generating $48,000 a year from a portfolio requires capital proportional to your yield target.

British American Tobacco has outperformed the S&P 500 YTD, rising ~6% amid market uncertainty, supported by resilient fundamentals. BTI's new categories segment now contributes 14% to revenues and saw 7% growth in 2025 despite multiple challenges. The company's overall performance in the past year, its outlook for 2026 and beyond, the market multiples and dividends, all work in its favour too.

The U.S. vaping market, long dominated by Chinese imports, is seeing an uptick of "Made in America" products, in what some analysts and industry executives ​say is a reaction to the Trump administration's crackdown on unlicensed brands.

Anticipated CMMI Medicare Pilot Program Participation, Regulatory Momentum, and Cost Structure Improvements Position Company for Growth and Pathway to Profitability LOUISVILLE, Colo., March 31, 2026 /PRNewswire/ - (TSX: CWEB) (OTC: CWBHF), Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), a botanical wellness innovation company and the market leader in cannabidiol (CBD) hemp extract wellness products, today announced results for the quarter and year ended December 31, 2025.

Transaction Addresses Capital Structure and Supports Near-Term Operating Priorities, Including Anticipated CMMI Medicare Pilot Program Participation LOUISVILLE, Colo., March 30, 2026 /PRNewswire/ - (TSX: CWEB) (OTCQB: CWBHF) Charlotte's Web Holdings, Inc., a botanical wellness innovation company and the market leader in cannabidiol ("CBD") hemp extract wellness products, today announced a transaction with BT DE Investments, Inc. ("BAT"), a subsidiary of British American Tobacco plc (LSE: BATS and NYSE: BTI), comprising two components: (i) amendment and conversion of BAT's outstanding C$75.3 million principal amount (approximately US$54 million) of the convertible debenture, as well as all accrued interest, into common shares of Charlotte's Web at a conversion price of C$0.94 (approximately US$0.67 at the Bank of Canada exchange rate on March 27, 2026 for estimation purposes); and (ii) a concurrent additional equity investment by BAT of US$10 million by way of a private placement at a price (the "Subscription Price") equal to the greater of (a) C$0.94, or (b) a dollar amount equal to the maximum discount available pursuant to section 607 of the TSX Company Manual applied to the 5-day volume weighted average price of the Company's common shares on the TSX prior to the closing date (collectively, the "Transaction").

PM, BTI and MO are navigating volume pressures and rising costs by expanding smoke-free portfolios and aligning with evolving consumer preferences.

British American Tobacco and Verizon are two steady dividend stocks in defensive industries. Realty Income and AGNC are two high-yield REITs that are solid buys after recent pullbacks.

The Undercovered Dozen highlights 12 lesser-covered stocks with recent actionable analysis and ratings, offering fresh ideas for investors seeking overlooked opportunities. Featured companies include Rayonier (RYN), Tower Semiconductor (TSEM), Rubrik (RBRK), Pagaya Technologies (PGY), Solid Power (SLDP), British American Tobacco (BTI), Alexandria Real Estate (ARE), and Franco-Nevada (FNV). Several stocks, such as RYN, RBRK, PGY, and INCY, are rated Buy or Strong Buy due to compelling valuations, recent execution, or underappreciated growth catalysts.

British American Tobacco p.l.c. (BTI) offers deep value, trading at a forward P/E of ~12x with a 5-6% dividend yield, despite robust cash flows. BTI's revenue and margins remain stable, with gross margins near 82% and FCF yield above 10%, underpinned by resilient global demand and pricing power. Transition to 'digital nicotine' (vapes, heated tobacco) offsets declining cigarette sales; BTI is closing the innovation gap with Philip Morris.

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