Could Buying British American Tobacco Stock Today Set You Up for Life?

As they near and enter retirement, many investors shift toward a dividend-focused investment strategy. That's a solid plan, but there's a risk that trying to generate the largest passive income stream leads to a risky portfolio.That's the dilemma when you consider buying British American Tobacco (NYSE: BTI) and its lofty 8.4% dividend yield. Here's what you need to know about this stock before you add it to your dividend portfolio.If you are looking at British American Tobacco, there's a good chance that you stumbled upon the stock because of its hefty 8.4% yield. On an absolute level, that's a pretty big number, but it becomes even more impressive when you consider it relative to other yields. For example, the S&P 500 (SNPINDEX: ^GSPC) has a skinny 1.2% yield, and the average consumer staples stock, using Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) as a proxy, has a yield of 2.6%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool