British American Tobacco p.l.c.
BTIConsumer Defensive · Stock · quarterly payer
Forward Yield
5.31%
Annual Dividend
$3.34
Payout Ratio
69%
5-Yr Growth
2.0%
Ex-Date
Oct 2, 2026
Frequency
Quarterly
Summary
As of July 2026, British American Tobacco p.l.c. (BTI) yields 5.31% ($3.34 per share annually), with a blended fair-value estimate of $99.64 — +59% upside, so it screens as undervalued. Dividend safety grade: C (64/100). 2 years of dividend growth.
Is BTI a good dividend stock?
Yes, with caveatsBritish American Tobacco p.l.c. (BTI) pays a quarterly dividend yielding 5.31% ($3.34/yr), with 2 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- 67% total price return over 5 years
Risks
- Cut its dividend in 2023
Key Data
- Dividend Yield
- 5.31%
- Payout Ratio
- 69%
- Annual Dividend
- $3.34
- 5-Yr Avg Growth
- 2.0%
- Ex-Dividend Date
- Oct 2, 2026
- Years of Growth
- 2
- Frequency
- quarterly
- Beta
- 0.13
- Market Cap
- $135.6B
- P/E Ratio
- 13.6
- 5-Yr Total Return
- 67%
- 52-Week Range
- $49.88 – $67.30
- Dividend Safety
- C · 64/100
- Ever Cut?
- Yes (2023)
Frequently Asked Questions
BTI Price — Last 12 Months
Daily close
Price Return
1 Year
+10%
3 Years
+89%
5 Years
+67%
52-Week Range
$49.88 – $67.30
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is BTI worth?
Undervaluedhigh confidenceOur blended fair-value estimate for British American Tobacco p.l.c. is $99.64 per share, versus a market price of $62.84. That implies 59% of upside — a margin of safety of about 37%.
Fair Value
$99.64
Current Price
$62.84
Upside
+59%
Margin of Safety
37%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -0.8% annual free-cash-flow growth. We model 7.9% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 7.9% stage-1 growth, 2.5% terminal growth, $4.61 EPS, $3.34 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
BTI Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jul 10, 2026 | — | $0.8350 | regular |
| Mar 27, 2026 | — | $0.8350 | regular |
| Dec 30, 2025 | — | $0.7490 | regular |
| Oct 3, 2025 | — | $0.7490 | regular |
| Jun 27, 2025 | — | $0.7490 | regular |
| Mar 28, 2025 | — | $0.7490 | regular |
| Dec 20, 2024 | — | $0.7430 | regular |
| Sep 27, 2024 | — | $0.7430 | regular |
| Jun 28, 2024 | — | $0.7430 | regular |
| Mar 21, 2024 | — | $0.7430 | regular |
| Dec 21, 2023 | — | $0.7010 | regular |
| Sep 28, 2023 | — | $0.7010 | regular |
| Jul 13, 2023 | — | $0.7010 | regular |
| Mar 23, 2023 | — | $0.7010 | regular |
Income Calculator
At $3.34 / yr per share
