LONDON, March 25, 2026, 16:02 GMT
British American Tobacco shares climbed in late London dealings Wednesday, changing hands at 4,352 pence, up 0.46% for the session. With the ex-dividend date set for Thursday, investors shifted positions and took note of a fresh buyback disclosure. According to a regulatory filing, BAT repurchased 99,844 shares on March 24 at a weighted average of 4,316.7189 pence.
This is important. For BAT, income streams and share repurchases are carrying much of the load as the company guides for 2026 growth at the lower boundary of its stated range. After a stock hits ex-dividend—when fresh investors aren’t eligible for the upcoming dividend—the share price typically drops to reflect the missed payment.
This move put BAT above where it stood earlier in the week—4,284 pence on March 23, then 4,332 pence on March 24, according to historical pricing. Wednesday’s level eclipsed both despite shares still being off about 6% for the month. Year-on-year, though, BAT is sitting nearly 38% higher.
BAT’s newest buyback comes under a 1.3 billion pound repurchase plan first announced in December. The program has lent some stability to the stock, with investors holding out for stronger momentum in smokeless nicotine and clearer management targets for 2026.
The dividend is still the main draw. Back in February, BAT confirmed plans to distribute 245.04 pence per share for 2025, split into four chunks of 61.26 pence each. The first payout lands May 7 for those listed as shareholders by March 27. Trading Economics pegs the yield at roughly 5.7%.
But that yield play has its limits unless BAT keeps expanding its pouch, vape, and heated-tobacco lines as traditional cigarette volumes keep dropping. “We are extremely encouraged by the U.S. performance of Velo,” Chief Executive Tadeu Marroco said back in February, after BAT reported that Velo had grabbed the No. 2 nicotine pouch spot in the U.S., just behind Philip Morris International’s Zyn and ahead of Altria’s On! Anthony Sedgwick, co-founder at BAT investor Abax Investments, said the boom in these newer products had “raised the appeal of tobacco companies” compared to more sluggish consumer peers. Reuters
Management isn’t letting its guard down. On Feb. 18, BAT stuck to its outlook, saying 2026 revenue growth—excluding currency effects—will probably come in at the low end of the 3% to 5% target. Back in December, Marroco’s words were blunt: “I’m trying to be cautious for 2026.” Bat
That caution stands out as the core risk right now. Thursday’s ex-dividend date may weigh on the stock in the near term. BAT continues wrestling with unregulated vapes stateside, tougher duties and black market cigarettes in Australia, plus tax and pricing headwinds in Bangladesh.
Still, BAT’s steady cash returns haven’t gone unnoticed by the market. Shares dropped to 4,230 pence—an eight-week low—on March 23, but bounced back Wednesday. Looks like yield support and buybacks are helping prop up sentiment, though questions about growth persist.
