Better High-Yield Dividend Stock: Realty Income vs. British American Tobacco

Realty Income, a U.S.-based REIT with a $51B market cap, has expanded its portfolio in the UK and Europe to over $18B in seven years, focusing on retail parks and necessity-led retail properties. The company's CEO highlights its cost-of-capital advantage and scale, aiming to consolidate the industry. Recent acquisitions include retail parks in the UK and Ireland, with plans to bring in joint venture partners.

British American Tobacco (BAT) launched 'Fit2Win,' a restructuring program aiming for £600M in annual savings by 2028. The company reported £12.2B revenue and £5.4B profit in H1 2026, with a £1.3B share buyback. BAT plans to cut 5,500 jobs and outsource 3,500, affecting 9,000 employees. The program focuses on cost reduction and efficiency, with workers facing job losses or transfers to external partners.

British American Tobacco (BAT) anticipates mid-teens annual revenue growth from smoking alternatives until 2030, driven by nicotine pouches, with industry revenues expected to grow 4% from 2025-2030. BAT predicts nicotine pouch revenues will triple, with a 30% contribution margin by 2030. The company also expects global tobacco volumes to decline 2.5% in the same period and remains on track to meet its 2026 financial guidance.

British American Tobacco (BAT) reaffirmed its FY26 revenue growth outlook of 3-5%, adjusted profit growth of 4-6%, and EPS growth of 5-8%, all at constant rates. The company expects New Category revenue to grow by mid-teens and contribution margin to reach 30% by 2030. BAT will discuss its Horizon 2030 ambitions at its Capital Markets Day.

British American Tobacco (BTI) outlined growth targets at its Capital Markets Day, aiming for mid-teens revenue growth in new product categories by 2030. The company projects 3-5% revenue growth for 2026 and maintains a 5.93% dividend yield with a 41% payout ratio. BTI's shares are currently 34.1% overvalued according to GuruFocus' GF Value™ estimate.

British American Tobacco (BATS) shares dropped 1.7% after the company revised its 2026 growth outlook, expecting lower-end revenue (3-5%) and profit (4-6%) growth, and mid-range EPS growth (5-8%). The company also outlined its 2030 ambitions, aiming for mid-teens New Category revenue growth and a 30% contribution margin. BATS expects a 2-2.5% FX headwind on 2026 EPS growth.