British American Tobacco (BTI)

British American Tobacco (BTI-N) has recently experienced a significant run-up in its share price, but experts suggest that current valuations may not be sustainable. While the company's dividend remains attractive at 5.01%, concern exists about its long-term prospects due to ongoing ESG considerations. The latest earnings report hinted at organic revenue growth within expectations, but operating profit guidance suggests cautious growth amid investment in next-generation products. The company has seen a recent recovery in U.S. revenues, marking its first positive outcome since 2022, yet competition and the need for R&D investment continue to pose challenges. A consensus view suggests that while BTI is still considered a solid income stock, trimming positions may be advisable for those with gains this year.