Think You Know British American Tobacco? Here's 1 Little-Known Fact You Shouldn't Overlook.

The big draw for investors with regard to British American Tobacco (NYSE: BTI) is its huge dividend, which at the current share price yields 9.5%. The big risk for investors is the ongoing decline of the market for cigarettes, which is British American Tobacco's biggest business line. That said, you may have missed a subtle but important change that British American Tobacco made recently in how it looks at its U.S. business.

The main headwind for British American Tobacco is the ongoing decline of its cigarette business. This is not a small issue. The company produced roughly 700 billion cigarettes in 2018. But the ongoing societal shift away from cigarette use has steadily reduced demand year in and year out, and the company has cut production in response. In 2023, the tobacco giant produced just 555 billion cigarettes. That's a 21% decline in five years.