5 High-Yield Dividend Stocks for Stable Income

4. British American Tobacco p.l.c. (NYSE:BTI)

Dividend Yield as of September 16: 7.1%

British American Tobacco p.l.c. (NYSE:BTI) is a London-based multinational manufacturing company that specializes in the production of cigarettes and related products. According to Insider Monkey’s data, 17 hedge funds owned investments in the company in Q2 2022, down from 19 in the previous quarter. These investments are worth over $2.3 billion.

In the first half of 2022, British American Tobacco p.l.c. (NYSE:BTI) reported revenue of £12.8 billion, up 5.7% from the same period last year. The company’s operating cash flow also showed a 42.9% year-over-year growth at £3.2 billion. Its free cash flow for the first six months grew to £2.3 billion, from £1.2 billion in the prior-year period. Year-to-date, British American Tobacco p.l.c. (NYSE:BTI) returned £3.8 billion to shareholders, £2.5 billion of which accounted for dividend payments.

British American Tobacco p.l.c. (NYSE:BTI) has been raising its dividends for the past 23 years. It currently offers $0.735 per share in quarterly dividends and has a yield of 7.1%, as of September 16. In August, Barclays lifted its price target on the stock to 4,500 GBP and maintained an Overweight rating on the shares.

Distillate Capital Partners LLC mentioned British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter. Here is what the firm has to say:

“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”