Stock Watch

British American Tobacco (M) Bhd

BRITISH American Tobacco’s attractive dividend policy makes it a defensive investment amid the uncertain market conditions. Kenanga Research said while the stock appears fairly valued for its financial year ending Dec 31, 2008 (FY08) and FY09 with price earnings ratios of 14.9 times and 14.3 times respectively, steady dividend yields of above 8% make it a worthwhile hold. It expects sales of BAT’s key brands, particularly Dunhill, to remain resilient despite the rise in excise duties and expected weak consumer sentiment.