Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, British American Tobacco has lifted its dividend by approximately 5.2% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. British American Tobacco is already paying out 176% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future.