Is This Huge News for This Ultra-High-Dividend Income Stock?
New nicotine products have taken the United States by storm in the last decade. These include e-vapor devices (vapes) and nicotine pouches. Traditional tobacco companies have invested and acquired start-ups in the space with mixed success. In recent years, the vaping sector has been disrupted by disposable devices, mainly from foreign countries. Even though these products are not approved by the U.S. government and are technically illegal, they have been taking a ton of market share, presenting a headwind for owners of other vaping brands.
Now, the U.S. government and law enforcement agencies claim they will finally crack down on stores selling these illegal disposable vapes. What does that mean for the nicotine giant British American Tobacco (NYSE: BTI) and its ultra-high dividend yielding close to 10%? Let's take a closer look and find out.
On Monday, June 10, the Federal Drug Administration (FDA) and Department of Justice said that they would be working with multiple law enforcement agencies in the United States to get illegal vaping devices off retail shelves. There have been announcements from the government telling convenience stores to stop selling these devices, but given how profitable they are, there has been minimal change so far. Now, with potential enforcement actions about to take place, you'll likely see stores start taking these devices off the shelves.
Source Fool.com
