JAPAF - Japan Tobacco: Future Dividend Cut Is The Key Risk
- All eyes are on the retail price increase and the RRP sales contribution in Japan Tobacco's home market Japan.
- Foreign exchange movements and down-trading for Japan Tobacco's international tobacco business are also in the spotlight.
- Japan Tobacco's high dividend yield is a key factor supporting its valuation, and a cut in future dividends represents a significant risk for the stock.
- Japan Tobacco trades at 11.5 times consensus forward FY 2021 P/E, and it offers a consensus forward FY 2021 dividend yield of 7.4%.
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Japan Tobacco: Future Dividend Cut Is The Key Risk