A key reason for this is price increases; with tobacco being an addictive product, British American Tobacco (and its peers) are simply able to raise prices so as to increase top line and, subsequently, bottom-line growth.
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In fact, more than a third have seen their shares rise 100% or more. I'm currently looking at some of your favourite blue chips and analysing their prospects for doubling your money in the next five years.
Although British American Tobacco (LSE: BATS) (NYSE: BTI.US) is a better investment proposition than Imperial Tobacco (LSE: IMT), in my opinion, BAT shares are unlikely to offer meaningful upside for some time, in my view. So, BAT shareholders may ...
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So, British American Tobacco's current yield of 4.2% should be very consistent moving forward and, furthermore, should grow at a rate higher than inflation due to continued scope for price increases and efficiencies.
Of course, the merger affects investors in British American Tobacco (LSE: BATS), since it owns 42% of Reynolds. However, putting the merger to one side, big tobacco stocks continue to offer long-term potential and could make a positive impact on your ...