British American Tobacco (BATS.L) Expands Its New Category Division, Which Includes Steam Products

At the moment, the shares of British American Tobacco look cheap. The shares are trading today at a price of 2,741 and have a current dividend yield of almost 8%. The share prices were not good. Since the beginning of the year, BATS shares have risen by more than 2% and have fallen by almost 10% over the past 12 months. British American Tobacco is focusing on expanding its New Category division, which includes steam products. The company encourages smokers to switch to these “evidence-based, low-risk alternatives.” It is worth emphasizing here that these products are not completely safe for health and can also be addictive. But so far it’s working for the FTSE 100 firm. British American Tobacco expects a clear path to the profitability of the New Categorical Division by 2025. This should be a positive thing for BATS shares. Earlier this week, he even raised his earnings forecast. Sales are expected to grow by more than 5% in 2021. This exceeds its previous forecast by 3% -5%.

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In my opinion, this clearly demonstrates the strong dynamics of the business. As I have already mentioned, BATS shares bring a good yield of almost 8%. This is great for an income-hungry investor like me. What is even better is that the income is supported by earnings.

Paul Meyer

Part-Time Reporter. Paul could do better in his engineering profession where he became a real pro. However, he chose the finance field to find a tranquil environment in his career. Today he creates a good number of great content for our team.

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