British American Tobacco (BAT) announced on 21 April 2026 that from 2018 it will simplify dividend payments by mandating direct credit into shareholders' nominated bank accounts, ending the issuance of dividend cheques. Shareholders on the main register currently receiving cheques will be contacted by Computershare and must take action to provide bank details. Those already receiving dividends via direct credit, CREST, or Computershare's Global Payment Service are unaffected, as are participants in the Dividend Reinvestment Plan. For the South Africa branch register, Computershare South Africa will notify affected shareholders of equivalent arrangements.
The move comes as BAT continues to report strong financial performance and expand its Next Generation Products (NGP) portfolio. In its H1 2017 results reported on 15 April 2026, BAT posted a 15.7% rise in revenue and a 16.3% increase in adjusted profit from operations, driven by price mix and NGP growth. The company's glo heated tobacco product has gained an estimated 8% share in Sendai, Japan, with expansion to Tokyo, Miyagi, and Osaka ahead of a national rollout in October 2017. BAT is now present in 15 markets with vapour and heated tobacco products.
The dividend policy change coincides with broader EU regulatory developments on tobacco. On 19 April 2026, the European Commission reported progress on new smoke-free environment and tobacco advertising rules, while Denmark, as Council President, proposed tightening personal-use exemptions for tobacco excise duties and extending rules to new product categories. These proposals, tabled on 18 April 2026, would reduce Member State discretion and set minimum quantity thresholds for personal-use presumption. BAT's shift to mandatory direct credit streamlines shareholder payments amid evolving EU tobacco regulation and the company's strategic focus on reduced-risk products.
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