Analysts upbeat on BAT’s 90% dividend payout

PETALING JAYA: Although the tightening regulation and possible tax hike for cigarettes in the 2010 Budget are expected to exert further pressure on British American Tobacco (M) Bhd (BAT) in the coming quarters, analysts are upbeat on its 90% high dividend payout for the current financial year.

Insider Asia said a probable hike in government tax, rising illicit trade and weaker economic conditions were likely to cap volume sales growth prospects for the industry, going forward.