Company in the news: British American Tobacco

While tobacco stocks have proven remarkably resilient, how well will British American Tobacco cope with the threat from e-cigarettes, asks Phil Oakley.

Tobacco share prices have been subdued over the last year. Given the damage that tobacco does to people's health, you don't hear many complaints when governments get tough with the manufacturers. But as an investor, there's always something to worry about fewer customers, higher taxes, advertising bans, the black market and the new threat of e-cigarettes.

Until now, tobacco firms have remained remarkably resilient in shrugging off these concerns, partly because they've kept on increasing prices and also paying bigger dividends. But how long can this last?

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