Why analysts are watching it
Analysts are watching British American Tobacco (BTI) because of its potentially attractive dividend and free cash flow. On May 7, 2026, The Patient Investor said in his video "PayPal Stock Analysis: The Comeback Is Near!" that BTI once paid a 10.5% dividend with a 15-16% free cash flow yield, even while growing revenues 5-7%, despite beliefs that the company was "dying." The Patient Investor also noted on May 10, 2026, in "Stock Market Could Crash Next Month! (Here’s Why)" that an investment in BTI in 2021 as part of a "dirt cheap value stocks" strategy led to a 27% return in 2022. This suggests a potential for strong returns from an undervalued stock with a high dividend, even if its chart appears flat. Investing in individual stocks carries inherent risk.
Contributing creators
Source clips
"Like I used to own a company called BTI, British American Tobacco. And the comp- And people believe it was dying, right? And the chart was flat for many, many years. But BTI was paying a 10.5% dividend, and the free cash flow yield was, I believe, 15 or 16%, and the company was still growing 5 to 7% in revenues."
— PayPal Stock Analysis: The Comeback Is Near!
"I did that in 2021, and I bought British American Tobacco and a lot of just dirt cheap value stocks. And in 2022, I made a 27% return."
— Stock Market Could Crash Next Month! (Here’s Why)
"Like I used to own a company [350s] called BTI, British American Tobacco. [352s] And the comp- And people believe it was [354s] dying, right? And the chart was flat for [356s] many, many years. But BTI was paying a [359s] 10.5% dividend, and the free cash flow [362s] yield was, I believe, 15 or 16%, and the [365s] company was still growing 5 to 7% in [368s] revenues."
— PayPal Stock Analysis: The Comeback Is Near!