British American Tobacco (BATS) is a member of the FTSE100 and the second biggest cigarette company around the world by global market share. Brands of the tobacco group are marketed in about 180 countries.
British American Tobacco has presented a profit of over 600 percent during the last ten years and the company still provides a good opportunity of further uplift. This is confirmed by a boost of 12.75 percent for the past year alone.
In the present unsettled economic climate, market consensus places British American Tobacco, the maker of Kent and Pall Mall cigarette brands, as a BUY and as a good protective play, even with the industry presently being pressurized from excise tax increases, risk of possible litigation and the yet unidentified outcome of the worldwide packaging rules modifications.
With the tobacco industry as a whole being in decrease British American Tobacco is a very well varied group, best geographically varied of any cigarette maker, and continues to be well positioned to gain from emerging markets growth.
A gradual dividend policy and a present dividend yield of 3.8 percent signify that BATS may as well be of possible interest for those investors profit. In fact this stock is presently included in pick list for both Capital and Income portfolios of the Reyker Discretionary Management Service.
Recent Interim Management Statement features involved cigarette volumes decreasing by 1.2 percent, but Global Drive Brand volumes increasing by 3 percent and company income rising by 4 percent for the 9 month period ended 30 September 2012. The Group continued a share repurchase programme in February 2012. During the 9 months to 30 September 2012, 30 million shares were acquired at overall cost of £978 million.