New nicotine products have taken the United States by storm over the past decade. These include e-vapor devices (vapes) and nicotine pouches. Traditional tobacco companies have invested in this sector and acquired start-ups with varying degrees of success. In recent years, the vaping sector has been disrupted by disposable devices, mainly from abroad. Although these products are not approved by the U.S. government and are technically illegal, they have captured a large market share, which means headwinds for owners of other vape brands.

Now the US government and law enforcement agencies say they will finally crack down on stores selling these illegal disposable vapes. What does that mean for the nicotine giant British-American tobacco (NYSE: BTI) and the ultra-high dividend yield of almost 10%? Let’s take a closer look and find out.

On Monday, June 10, the Federal Drug Administration (FDA) and the Department of Justice said they would work with multiple law enforcement agencies across the United States to remove illegal vaping devices from store shelves. There have been government announcements ordering supermarkets to stop selling these devices, but given their profitability there has been minimal change so far. With potential enforcement actions underway, you’ll likely see stores pulling these devices from their shelves.

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Source Fool.com