Want $1,000 in Dividend Income? Here’s How Much You’d Have to Invest in British American Tobacco Stock

Investors looking for a reliable source of dividend income may want to consider British American Tobacco (BTI). With its current stock price and dividend payout, the company offers an impressive 9.5% dividend yield.

British American Tobacco is one of the largest cigarette companies globally, with sales spread across various regions, including the United States, Europe, Asia, South America, the Middle East, and Africa. Despite a decline in combustible tobacco use in some markets, overall tobacco consumption is increasing, driven by the popularity of smokeless products like vapes and nicotine pouches.

The company’s consistent and growing demand has resulted in reliable cash flows, with free cash flow reaching $10.7 billion in 2023. This strong financial performance supports its large dividend, which is covered by just 60% of the company’s free cash flow. This leaves room for British American Tobacco to invest in new products, buy back stock, and pay down debt.

To generate $1,000 in annual income from British American Tobacco stock, an investment of approximately $10,500 would be needed. For those looking to generate $1,000 in monthly income, an investment of around $126,000 would be required. With its track record of providing substantial and consistent dividends, British American Tobacco is a compelling option for income-seeking investors.