British American Tobacco (BATS, BTI) Stock on 3 December 2025: Buybacks, Dividend Power and the Smokeless Pivot

Data and news in this article are up to date as of 3 December 2025. This is general information, not investment advice.

Where British American Tobacco stock stands on 3 December 2025

British American Tobacco p.l.c. (LON: BATS; NYSE: BTI) has quietly turned into one of 2025’s strongest large‑cap comeback stories.

On the London Stock Exchange, BATS has been trading in the mid‑£43 range and recently hit a new 52‑week high around 4,427p, giving the group a market capitalisation of roughly £95.5bn. ^[1] Over the past 12 months the share price has climbed more than 40%, with several analyses putting the total return (including dividends) in the mid‑50% range. ^[2]

In New York, the ADRs (BTI) most recently change hands at about $58 per share, broadly consistent with recent quotes on major data providers. ^[3]

Despite the rally, BATS still trades on a forward earnings multiple in the low‑teens and offers a dividend yield around 5–5.5%, depending on currency and data source. ^[4] That combination of income and re‑rating potential is exactly what has pulled income and value investors back toward the stock in 2025.

Dividend yield: still a core part of the investment case

British American Tobacco remains one of the FTSE 100’s flagship income stocks:

The company pays quarterly dividends of £0.60 per share, with the most recent payment on 7 November 2025 and the next ex‑dividend date expected in late December 2025. ^[5]
On current prices, that equates to a trailing dividend yield of roughly 5.3–5.5% on the London listing and just over 5% on the NYSE ADR. ^[6]

Various dividend trackers estimate the annualised ADR payout at about $3.0–3.1 per share, with modest mid‑single‑digit growth year on year. ^[7]

Coverage is not especially fat. Estimates of the payout ratio range from the mid‑60s (based on adjusted earnings) to far higher if calculated on GAAP numbers distorted by large litigation charges. ^[8] But the business still throws off substantial free cash flow, and management continues to signal a commitment to “progressive” dividends alongside buybacks. ^[9]

For investors who can live with the ethics and regulation of tobacco, British American Tobacco remains aimed squarely at the “global income stock” niche.

Share buybacks: a £1.1bn tailwind and a shrinking share count

One of the clearest drivers of the 2025 share price rally has been an increasingly aggressive buyback programme.

In June 2025 BAT expanded its 2025 share buyback to £1.1bn, funded in part by the sale of roughly 2.3–2.5% of its stake in Indian conglomerate ITC via a large block trade. ^[10]
A new phase of the programme, executed independently by Goldman Sachs International, runs from 16 October to 23 December 2025. All repurchased shares are being cancelled. ^[11]

Regulatory filings in November show a steady drumbeat of daily repurchases, often in the low‑hundreds‑of‑thousands of shares. ^[12]

As of the end of November, the company reported:

2,181,845,074 ordinary shares with voting rights outstanding
132,988,352 shares held in treasury

This implies that roughly 5–6% of the total issued share capital is now sitting in treasury, no longer participating in dividends or votes. ^[13]

From a shareholder’s perspective, that combination of a 5%+ cash yield and a mid‑single‑digit reduction in share count every year is a powerful engine for total returns—especially in a sector where organic volume growth is limited.

Recent short‑term trading reports back this up: on 28 November 2025, BATS closed at £44.21, a new 52‑week high, after a 1.87% daily gain that outpaced the FTSE 100. ^[14] Several market commentaries explicitly link the outperformance to “aggressive buybacks” and broker upgrades. ^[15]

Operational performance: U.S. recovery and smokeless products

Behind the capital‑returns story sits a slower‑moving, but important, operational pivot.

2024 results and the 2025 guidance upgrade

For 2024, BAT reported:

Revenue of around £25.9bn, down in reported terms due to FX and disposals, but up slightly on a constant‑currency basis
Continued decline in cigarette volumes, offset by price/mix and growth in “New Category” products such as Vuse vapes, glo heated tobacco and Velo nicotine pouches ^[16]

In June 2025 the company raised its 2025 revenue outlook to 1–2% growth (from “around 1%”), targeting 1.5–2.5% growth in adjusted profit from operations. ^[17]

Half‑year results on 31 July 2025 reinforced that narrative:

Revenue growth running at the top end of the 1–2% range
“New Category” revenue up in the low‑single digits (2–4% at constant exchange rates)
U.S. revenue up 3.7%, marking a return to growth in BAT’s largest market after three stagnant years ^[18]

Smokeless products (vapes, heated tobacco and oral pouches) now contribute roughly 18% of group revenue, up from low‑teens percentages just a few years ago. ^[19]

“Building a Smokeless World” – but from a low base

BAT’s long‑term strategy is branded as “A Better Tomorrow” and a plan to “build a smokeless world.” The group has set out targets to: ^[20]

Become a predominantly smokeless business by 2035
Reach 50 million consumers of smokeless products by 2030
Generate at least 50% of revenue from smokeless products by 2035

Today, smokeless revenue is still in the teens as a percentage of sales, meaning the company has a long way to go and remains heavily dependent on combustible cigarettes.

The external backdrop is also more complicated than the marketing slogans suggest. A widely cited analysis in mid‑2025 noted that global vaping sales are actually shrinking in key markets like the US and UK, with BAT itself expecting a mid‑teens percentage decline in vape volumes in the first half of 2025 due to bans on disposables and competition from illicit products. ^[21]

In October 2025, BAT paused a pilot launch of an unlicensed disposable vape (Vuse One) in the U.S. just as the FDA stepped up enforcement against unauthorized products, underlining both regulatory and competitive risks in this “new category” segment. ^[22]

Regulation, litigation and ESG: the other side of the story

Owning tobacco stocks has never been just about the numbers. For BAT, 2025 has again underscored how regulation, litigation and ESG controversies can move the narrative.

Ongoing regulatory and legal headwinds

Key issues include:

Generational smoking bans & flavour restrictions:
- The UK continues to debate a generational smoking ban and stricter vaping rules, with some peers in the House of Lords seeking to soften the proposed legislation. ^[23]
- The EU already bans menthol cigarettes and many flavoured products, and similar discussions continue elsewhere. ^[24]
North American litigation and taxes:
- BAT booked a £6.2bn provision in relation to Canadian tobacco litigation and continues to navigate tax and regulatory pressure in markets such as Australia and Bangladesh, factors that weighed on its 2024 reported profits. ^[25]
U.S. FDA enforcement on vapes:
- The pause of Vuse One’s US disposable launch came amid a broader FDA crackdown on non‑authorized vaping devices, which has distorted the market in favour of illicit imports and complicated BAT’s transition story. ^[26]

ESG profile: climate kudos vs. health and lobbying criticism

On the ESG front, investors are getting mixed signals:

On the environmental side, BAT received a rare “Triple‑A” rating from CDP in early 2025 for its disclosures and actions on climate change, forests and water security, and has been repeatedly highlighted as a “climate leader” in international rankings. ^[27]
But social and governance concerns remain substantial. In November 2025, multiple outlets reported that BAT had lobbied to water down Zambia’s proposed tobacco control bill, pushing for smaller health warnings, weaker flavour restrictions and lighter penalties, despite similar or tougher rules already existing in the UK. Public‑health advocates and NGOs described the behaviour as “utter hypocrisy.” ^[28]

For some institutional investors, climate leadership does not offset the underlying health impact of nicotine products and the reputational risk from such lobbying controversies. That tension is likely to remain a structural overhang for the entire sector.

Management changes in 2025

Governance watchers are also focused on changes in the top ranks:

CFO change: In August 2025, BAT announced that Chief Financial Officer Soraya Benchikh would step down after about 15 months in the role, with former interim CFO Javed Iqbal once again stepping in on an interim basis. ^[29]
- The timing surprised the market because it followed a period of strong share‑price performance and solid H1 results. Some analysts highlighted investor appreciation for Benchikh’s capital discipline and support for resuming buybacks. ^[30]
Board refresh: In October 2025, BAT appointed Matthew Wright as an independent non‑executive director and member of the remuneration and nominations committees, effective 1 November 2025. ^[31]
Regional leadership: The long‑serving APMEA regional director Michael Dijanosic will step down at the end of 2025, with Pascale Meulemeester taking over the region and joining the management board from 1 January 2026. ^[32]

These moves come as BAT prepares its full‑year 2025 pre‑close trading update on 9 December 2025, which will be closely watched for any shift in guidance or strategic tone under the evolving leadership team. ^[33]

What analysts and valuation models are saying

The share price rally has closed much of the obvious “deep value” gap, but views remain divided on where BATS and BTI go next.

London listing (BATS)

Sell‑side targets:
- MarketBeat data shows a 12‑month consensus target around 4,500p, with a range from 3,400p to 5,200p and an overall rating of “Hold.” At late‑November prices, that implied only low‑single‑digit upside. ^[34]
- Other platforms such as TipRanks and Fintel suggest an average target between roughly 4,400p and 4,475p, again implying only modest upside from current levels. ^[35]
Valuation screens:
- Hargreaves Lansdown data puts BATS on a price/earnings ratio around 12x and a dividend yield near 5.3–5.4%, which is in line with other mature tobacco majors but still elevated versus the wider FTSE 100. ^[36]
- Several fundamental‑analysis sites argue that the shares remain undervalued by 20–30% using discounted cash‑flow models, with one DCF study publishing an “intrinsic value” of about £61 per share, roughly 29% above late‑November prices. ^[37]

In other words, traditional brokers—who often anchor to near‑term earnings multiples—see limited upside at current prices, while cash‑flow‑driven models still point to meaningful long‑term value if regulation doesn’t crush profitability.

New York ADR (BTI)

For BTI, the picture is similarly mixed:

Some aggregators such as MarketBeat and Yahoo Finance show a consensus 12‑month target around $51–56, which actually implies slight downside versus today’s price in the high‑$50s. ^[38]
Others, including StockAnalysis and certain broker reports, highlight a smaller but positive upside, with targets around $62 and an overall “Strong Buy” label from a small pool of analysts. ^[39]

Looking further out, platforms that model earnings and revenue growth expect:

EPS growth in the mid‑teens per year
Revenue growth in the low‑single digits
Return on equity in the high‑teens over the next three years ^[40]

That is hardly explosive, but for a company already yielding more than 5% and buying back stock, mid‑teens EPS growth would be enough to justify the current rerating in many valuation frameworks.

Sector backdrop: Big Tobacco’s uneasy rally

BAT is not moving in isolation. 2025 has been a strong year for Big Tobacco more broadly:

Philip Morris International has delivered double‑digit revenue growth driven by smoke‑free products, which now contribute over 40% of its revenue, and aims for two‑thirds by 2030. ^[41]
A Financial Times analysis in mid‑2025 highlighted that Big Tobacco stocks, including BAT, have delivered returns rivaling or beating several mega‑cap tech names over the past five years once dividends are reinvested, largely thanks to high payouts and buybacks. ^[42]

At the same time, the reduced‑risk products (RRP) market is expected to roughly double over the coming decade, from around $31.5bn in 2025 to more than $70bn by 2035, according to one industry forecast, implying an annualised growth rate of roughly 8.5%. ^[43]

For BAT, the strategic question is whether its portfolio—particularly Vuse in vapes, glo in heated tobacco and Velo in nicotine pouches—can capture enough of that growth to offset the secular decline in traditional smoking, without being crippled by new regulation or illicit competition.

Key catalysts to watch after 3 December 2025

Investors following British American Tobacco stock in the near term are watching several upcoming events:

9 December 2025 – Full‑year 2025 Pre‑Close Trading Update
- Management is expected to confirm (or revise) its 1–2% revenue growth and 1.5–2.5% adjusted profit growth guidance, and may provide more colour on U.S. trends and smokeless margins. ^[44]
Continuation and completion of the 2025 buyback programme
- The pace of daily purchases through December, and any indication of a 2026 programme, will be closely scrutinised. ^[45]
Regulatory developments
- Progress (or delays) on the UK tobacco and vapes bill, U.S. FDA actions on vapes and any further news on the Canadian litigation settlement could change risk perceptions quickly. ^[46]
ESG and reputational issues
- The fallout from the Zambia lobbying story, combined with continuing climate accolades, will likely influence which institutions feel able—or unable—to hold the stock. ^[47]

Bottom line: income powerhouse, slow‑growth business

As of 3 December 2025, British American Tobacco sits at an interesting crossroads:

The share price has already rerated significantly, with 12‑month returns in the 40–55% range. ^[48]
Yet the stock still offers a high single‑digit total‑shareholder‑return profile made up of:
- 5%+ cash dividend yield
- Meaningful buyback‑driven shrinkage of the share count
- Mid‑teens expected EPS growth if guidance and consensus forecasts are met ^[49]

The upside case is that BAT continues to stabilise its U.S. business, scales smokeless products into a higher‑margin, higher‑growth engine, and returns most of its cash flow to shareholders, turning the current price into a stepping‑stone rather than a ceiling. ^[50]

The downside case is that regulatory pressure, litigation and the gradual decline of smoking combine to compress earnings and valuations faster than smokeless products can grow—especially if growth in vapes and pouches is itself curtailed by new rules or illicit competition. ^[51]

Either way, British American Tobacco stock in late 2025 is no longer the deeply out‑of‑favour name it was a year or two ago. It has become, once again, a core global income and value holding for many investors—one whose future returns will hinge on how convincingly it can turn “A Better Tomorrow” from slogan into sustained, smokeless cash flow.

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