British American Tobacco vs. Altria: Does Stronger Volume Performance Make BAT a Buy?

Altria (NYSE: MO) and British American Tobacco (NYSE: BTI) both have attractively large yields, at 7.4% and 7.7%, respectively. By comparison, the S&P 500 index is only yielding 1.2% while the average consumer staples stock has a yield of roughly 2.7%. There's just one problem: The main product made by these two companies, cigarettes, is in decline. But there's a difference in the rates of decline Altria and British American Tobacco are facing.Cigarettes were once viewed as cool and it wasn't a stigma to be a smoker. The realization that these tobacco products are addictive and cause cancer changed all of that. And today the business is facing a long-running decline in volumes. This is particularly true in North America, where Altria is focused. But it isn't a trend that's unique to North America, as globally diversified British American Tobacco has been dealing with ongoing volume declines as well.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool