Justin Sullivan
Introduction
British American Tobacco (NYSE:BTI) could potentially see a plethora of positive tailwinds going forward. In the near term, a high dividend rate could be a catalyst for British American Tobacco as the macroeconomic conditions push the federal funds rate lower in the coming few quarters. Further, the slower and weaker-than-expected regulatory pressure in the tobacco market along with the resilient demand for tobacco even while in a secular decline could benefit the company. Then, in the long term, the company’s bet on non-combustible products could sustain the level of growth and cash flow that the company is enjoying today. Therefore, considering these bullish catalysts, I believe British American Tobacco is a buy.
Resilient Tobacco Market
It is a well-known fact that the Tobacco market is in secular decline as both the consuming public and numerous government administrations around the world are aiming…
