Is This 10% Yielding Tobacco Stock Finally a Buy?
The stock market has gotten its animal spirits back yet again. The S&P 500's price-to-earnings ratio (P/E) has hit 27, Nvidia has rocketed to one of the largest market caps in the world, and Super Micro Computer is up more than 750% in less than a year. We are living through an artificial intelligence (AI) boom, at least in the stock market, which has investors extremely optimistic about the future.
What if you want to fade the AI boom? For more conservative investors, now may be the time to hunt for steady dividend payers that can ride out the AI boom, which could eventually bust for greedy investors. Enter British American Tobacco (NYSE: BTI). The tobacco giant's dividend yield is currently close to 10%, making it one of the highest dividend payers in the world at the moment.
The company is going through major troubles that have kept its stock underperforming for years. But with the dividend yield now so high, is it finally the time for investors to take the plunge? Let's take a closer look and find out whether shares of British American Tobacco are a buy at these prices.
Source Fool.com
