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2 Reasons to Buy British American Tobacco Stock at the End of 2024 and 2 Reasons to Avoid It for Now

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As 2024 comes to a close, British American Tobacco's (NYSE: BTI) stock is sitting on a roughly 25% year-to-date price gain. That's a pretty rapid advance, particularly for a company that is largely viewed as an income investment,
The article from MSN Money discusses the investment potential of British American Tobacco (BAT) stock as of late 2024. It outlines two reasons to buy the stock: firstly, BAT's strategic shift towards non-combustible products like e-cigarettes and heated tobacco, aiming for these to constitute 50% of its revenue by 2035, which could diversify its income sources away from traditional cigarettes. Secondly, the stock's high dividend yield, currently at 9.7%, offers an attractive return for income-focused investors. However, there are two reasons to avoid the stock: the ongoing decline in cigarette sales, with a 5.5% drop in the first half of 2023, signaling potential future revenue challenges. Additionally, the company faces significant regulatory and legal risks, including potential bans on flavored e-cigarettes and ongoing litigation related to health issues from smoking, which could impact its financial stability and stock performance.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/2-reasons-to-buy-british-american-tobacco-stock-at-the-end-of-2024-and-2-reasons-to-avoid-it-for-now/ar-AA1vtL2f ]


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