{"id":53605,"date":"2026-06-01T12:54:02","date_gmt":"2026-06-01T12:54:02","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/53605\/"},"modified":"2026-06-01T12:54:02","modified_gmt":"2026-06-01T12:54:02","slug":"british-american-tobacco-lonbats-shareholders-have-earned-a-17-cagr-over-the-last-five-years","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/53605\/","title":{"rendered":"British American Tobacco (LON:BATS) shareholders have earned a 17% CAGR over the last five years"},"content":{"rendered":"\n

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the British American Tobacco p.l.c. (LON:BATS<\/a>) share price is up 51% in the last five years, slightly above the market return. We’re also happy to report the stock is up a healthy 42% in the last year.<\/p>\n

Now it’s worth having a look at the company’s fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.<\/p>\n

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10bn in marketcap – there is still time to get in early.<\/a><\/p>\n

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).<\/p>\n

During the last half decade, British American Tobacco became profitable. That would generally be considered a positive, so we’d hope to see the share price to rise.<\/p>\n

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).<\/p>\n

\"earnings-per-share-growth\"<\/a> LSE:BATS Earnings Per Share Growth October 21st 2025 <\/p>\n

We know that British American Tobacco has improved its bottom line lately, but is it going to grow revenue? Check if analysts think British American Tobacco will grow revenue in the future.<\/a><\/p>\n

What About Dividends? <\/p>\n

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, British American Tobacco’s TSR for the last 5 years was 124%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.<\/p>\n

A Different Perspective <\/p>\n

We’re pleased to report that British American Tobacco shareholders have received a total shareholder return of 53% over one year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 17% per year), it would seem that the stock’s performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It’s always interesting to track share price performance over the longer term. But to understand British American Tobacco better, we need to consider many other factors. For instance, we’ve identified 3 warning signs for British American Tobacco <\/a> that you should be aware of.<\/p>\n

Of course British American Tobacco may not be the best stock to buy. So you may wish to see this free collection of growth stocks.<\/a><\/p>\n

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.<\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n","protected":false},"excerpt":{"rendered":"If you want to compound wealth in the stock market, you can do so by buying an index…\n","protected":false},"author":2,"featured_media":41480,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20745],"tags":[20030,5692,21052,20796,22733],"class_list":["post-53605","post","type-post","status-publish","format-standard","has-post-thumbnail","category-british-american-tobacco","tag-british-american-tobacco","tag-share-price","tag-shareholder-return","tag-total-shareholder-return","tag-tsr"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116674957347422610","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/53605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=53605"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/53605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/41480"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=53605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=53605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=53605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}