British American Tobacco (BAT) has introduced a Dividend Reinvestment Plan (DRIP) for non-US and non-Canadian shareholders, allowing them to use cash dividends to purchase additional ordinary shares in the company. The plan, administered by Computershare Investor Services PLC, charges participants a 0.5% fee on the amount used to buy shares plus 0.5% for stamp duty reserve tax. Shares purchased will be credited by the tenth working day after the dividend payment date. The DRIP is not offered to US or North American persons or in jurisdictions where participation would require compliance with local regulatory procedures.
The launch follows BAT's ongoing efforts to enhance shareholder value and streamline investor services. Prior coverage from EUMatrix has tracked regulatory developments in the pharmaceutical and casino sectors, but BAT's announcement marks a notable corporate finance initiative in the tobacco industry. The company has previously reported quarterly dividend payments and maintained a shareholder information portal, with the DRIP now providing an additional option for non-US investors to build their holdings without incurring brokerage fees.
BAT's DRIP is voluntary, and shareholders may withdraw at any time by notifying Computershare. The plan is expected to appeal to long-term investors seeking to compound their returns, though participants remain liable for income tax on dividends as if received in cash. The base cost of shares acquired under the DRIP will be relevant for capital gains tax calculations upon sale. BAT has made the full terms available via a booklet and application form on Computershare's website.