Tobacco companies have proved to be some of the steadiest investments for income investors over the last several decades. There are many reasons for this, such as the addictive nature of cigarettes, the pricing power the companies have, and the profitability of tobacco.

Investors who don't have ethical qualms about the industry should consider British American Tobacco (NYSE: BTI), one of the world's most dominant tobacco businesses. Let's look into its fundamentals and valuation to better understand the case for buying the stock.

As more consumers have become aware of the health effects of smoking, cigarette sales volumes have been in perpetual decline throughout most economically developed countries. But British American Tobacco has a lot going for it that makes me confident the company will be just fine.

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Source Fool.com