British American TobaccoNYSE: BTI

The stocks of iconic brands are en masse. However, the informational asymmetry linked to the financial markets means that few are undervalued.

British American Tobacco is one of the largest cigarette companies in the world. The company has a huge yield and turnaround potential as it looks to expand beyond cigarettes.

The current interest rates levels enable more high yield opportunities. Yet, to achieve close to double digit yields, in most cases, investors have to take excessive risk. In this article I present two de-risked ~ 9% yielders, which I also own in my high yield seeking investment portfolio.

British American Tobacco sells the Velo nicotine pouch, a competitor to Zyn. British American Tobacco will also benefit from a federal crackdown on illegal vaping products.

WASHINGTON — The Food and Drug Administration on Friday authorized the first menthol-flavored electronic cigarettes for adult smokers, acknowledging that vaping flavors can reduce the harms of traditional tobacco smoking.

On a YTD basis, BTI has underperformed Altria and Philip Morris by double-digit total returns. Most of the reasons why BTI's share price has remained depressed are temporary. If we zoom into the details, we will understand that BTI is still set to deliver positive organic growth this year.

High-yield dividend stocks always present a difficult framework for investors. Here's the reality.

BTI's share price remains low due to concerns over traditional cigarette business, but new generation products show strong growth potential. Revenue growth is expected to be low due to declining cigarette volumes, but profitability may increase through cost efficiencies and new products. Regulatory risks exist, but effective enforcement could benefit BTI by increasing market share and profit margins.

British American Tobacco should benefit from law enforcement crackdowns on illegal vaping devices. The company owns one of the leading vaping brands, as well as nicotine pouches.