LONDON, March 20, 2026, 16:11 GMT
British American Tobacco was trading lower in London on Friday, last seen at roughly 4,295 pence by 15:50 GMT—a drop of 1.4% for the session. Shares moved within a range between 4,291 and 4,387 pence. 1
This shift is notable: BAT was among London’s more resilient income plays. According to LSE data, the shares have climbed 38.0% in the past year, ahead of the FTSE 350 by 23.3 percentage points. Thursday’s close at 4,355 pence puts the stock just 6.8% under its March 2, 52-week high. 2
The FTSE 100 dipped 0.1% by 1039 GMT, on track for its third weekly drop, investors rattled by the Middle East conflict, climbing oil prices, and renewed speculation around Bank of England rates. BAT offered scant new operational updates to counter the mood. 3
BAT took care of some routine admin this week. The company rolled out a base prospectus on March 18, setting up a £25 billion Euro Medium Term Note Programme for debt issuance. Then, on March 19, BAT bought back 127,766 shares, paying a weighted average price of 4,348.2171 pence per share. 4
For the stock, the headline remains BAT’s bet on smoke-free nicotine in the U.S. Back in February, the company announced that its Velo nicotine pouches had secured the No. 2 spot in U.S. market share—trailing only Philip Morris International’s Zyn and edging out Altria’s On! Chief Executive Tadeu Marroco called Velo’s performance stateside “extremely encouraged.” 5
BAT stuck to its cash return strategy. Alongside its full-year numbers, the company guided that 2026 performance would probably hit the lower end of its mid-term outlook. Still, BAT held firm on its £1.3 billion buyback and bumped up the annual dividend by 2%, reaching 245.04 pence a share. That gets split into four payments of 61.26 pence each. Investors eye the next ex-dividend date on March 26. 6
Even so, regulation remains the big hinge for any rebound. Back in December, Marroco flagged that about 70% of the U.S. vape sector hadn’t been brought under proper oversight — a stubborn gap that’s weighing on BAT’s Vuse and leaving the pace of any rebound in legal sales up in the air. He put it plainly: “trying to be cautious for 2026.” 7
Uncertainty hasn’t disappeared. On March 13, Reuters noted that just 41 vape products—each either tobacco or menthol—have cleared U.S. authorization. That’s despite the FDA’s revised guidance, which might allow more products on the market if they’re seen as less attractive to young people. 8
Back in December, Panmure Liberum’s Rae Maile flagged that BAT’s 2026 forecast wasn’t “quite what the share price needed” after its rally. The action on Friday pointed to lingering nerves. Sure, investors still rate the cash returns, but they’re pressing for firmer evidence that Velo’s progress, along with stricter U.S. enforcement, can make up for softer growth in other markets. 7
