The 8.3% dividend yield on offer from British American Tobacco (NYSE: BTI) is likely to be very appealing to income-oriented investors. After all, the S&P 500 index is only offering a yield of around 1.4%. But yield alone isn't a good reason to buy a stock, and sometimes, a high yield is an indication that investors feel the dividend is at risk.

Here's why investors need to track one very important number at British American Tobacco (maker of Camel, Kent, Newport, and Lucky Strike cigarettes) as they monitor the safety of the company's dividend and consider whether or not to invest.

In the second quarter of 2023, British American Tobacco's combustibles segment, which is almost all cigarettes, accounted for just over 80% of sales. It is the most important business for the company and the one that drives its overall performance.

Continue reading

Source Fool.com