London, May 18, 2026, 11:05 BST
- Shares of British American Tobacco gained 1.5% in London morning trading, putting the stock close to the top of its 52-week range.
- Oil and bond volatility kept global markets on edge, prompting the move.
- The stock is still backed by buybacks, dividends and gains in nicotine pouches. U.S. vape rules and higher costs are the main risks.
British American Tobacco p.l.c. climbed in early London trade on Monday, extending gains as tobacco stocks drew buyers despite swings in global markets. Shares were at 4,939 pence by 10:56 BST, up 1.54%. The stock earlier hit 4,965 pence. UK stocks use pence quotes in London. Google
FTSE 100 up 0.26% as broader market stays volatile. The gain stood out with the tape still choppy, as the index ticked up to 10,222.38 on delayed prints. Oil and government bonds were still moving on fresh Middle East worries. HL
BAT, which sits on the FTSE 100 and is counted among London’s main defensive stocks — those thought to be less hit by shifts in spending — has drawn support from investors attracted by its steady cash flow, dividends, and share buybacks. The company says it will cancel the shares it buys back under its ongoing programme. BAT
BAT has set a 245.04 pence interim dividend for 2025, with four payments of 61.26 pence scheduled for May, August and November 2026, and February 2027. Investors have focused more on the dividend as bond yields have fluctuated. BAT
Global shares fell Monday as new drone attacks in the Gulf drove oil and bond yields up. Reuters said Brent crude was trading near $110.50 a barrel. “Right now, markets are panicking as they are pricing the possibility that the Strait of Hormuz remains closed,” said George Lagarias, chief economist at Forvis Mazars. Reuters
London’s FTSE 100 moved between flat and just lower in early trading, Trading Economics reported. Tobacco stocks and oil kept the index more stable than some other European markets. BAT rose 1.8%, with BP and Shell also posting gains as crude prices went up. Trading Economics
BAT shares are still reacting to the company’s February update and its 2026 forecast. CEO Tadeu Marroco in February said BAT had “accelerating momentum through 2025” and highlighted strong gains for Velo Plus, its nicotine-pouch brand. BAT said Velo is now No. 2 by volume and value share. BAT
Mixed signals for competitors. Reuters said last week that Imperial Brands, BAT’s main UK-listed rival, lost share in key markets as it pushed for profit instead of volume. The same piece noted BAT’s Velo gained U.S. share from Philip Morris International’s Zyn and Altria’s On! in February. The report used basis points—hundredths of a percentage point. Reuters
The trade is not locked in. BAT has warned that its 2026 revenue and adjusted operating profit will probably land at the lower end of its medium-term goals, with U.S. vape competition and regulations still a drag. Marroco told Reuters in December, “I’m trying to be cautious for 2026.” A longer Middle East shock could add to logistics and input costs for the whole sector, a risk Imperial pointed out last week. Reuters
BAT shares are still trading close to the top of their recent range after Monday, and investors are watching to see if the company can hold up those levels without new trading news. Support for the stock is clear, but there’s still the big unknown: how much further can defensive cash returns hold up if regulatory risks, oil, or U.S. vaping enforcement turn against them.
