British American Tobacco: Is This Ultra-High-Yield Dividend Stock a Buy in 2025?

High-yield dividend stocks present an intriguing paradox for investors. While historical data shows they can outperform the S&P 500 over multidecade periods when dividends are reinvested, many high-yielding stocks struggle to match market returns over the short term. The reason? An exceptionally high yield often serves as a warning sign, suggesting a company's best days may be behind it.British American Tobacco (NYSE: BTI), commonly known as BAT, exemplifies this dynamic. The tobacco giant currently offers an eye-catching 8.2% dividend yield, yet its stock performance tells a more complex story. Over the prior 10 years, BAT shares have significantly underperformed both the broader market and many of its tobacco industry peers.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool