5 Best Tobacco and Cigarette Stocks To Buy

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

Number of Hedge Fund Holders: 22

British American Tobacco p.l.c. (NYSE:BTI) is involved in supplying tobacco and nicotine products to consumers worldwide. The company’s products include vapor, tobacco heating, contemporary oral nicotine items, combustible cigarettes, snus, and moist snuff. British American Tobacco p.l.c. (NYSE:BTI) is one of the best tobacco stocks to invest in. The company paid a per share quarterly dividend of $0.7006 to shareholders on November 8. 

According to Insider Monkey’s second quarter database, 22 hedge funds were bullish on British American Tobacco p.l.c. (NYSE:BTI), same as the earlier quarter. William B. Gray’s Orbis Investment Management is the leading stakeholder of the company, with 7.9 million shares valued at $263 million. 

Broyhill Asset Management made the following comment about British American Tobacco p.l.c. (NYSE:BTI) in its second quarter 2023 investor letter:

“In our year-end letter to investors, we explained why we had reduced our investment in Altria and reinvested the proceeds to increase our position in Philip Morris. This quarter, we exited the position completely, swapping our exposure for British American Tobacco p.l.c. (NYSE:BTI), as the valuation gap became too hard to ignore. Investors are rightly frustrated with the stock. In addition to the menthol ban, leadership change, and North Korea kerfuffle. BTI has mountains of debt piled on its balance sheet following the acquisition of Reynolds, which will limit options for capital allocation, namely more buybacks. While we’d love to see new management aggressively repurchasing stock at these prices – shares trade below 7x earnings – we don’t think buybacks are necessary for the investment to work from here.”