Imperial Brands
Imperial Brands (Ticker: FTSE: IMB) Founded in 1901 is headquartered in Bristol and is a multinational tobacco business that has been operating for over 100 years.
Imperial Brands is the fourth largest tobacco company in the world.
Tobacco companies like alcohol and gambling companies are known as sin stocks, so they can be controversial for some investors.
Consumers who decided to drink with continue drinking the same being said for smokers and gamblers, holding such equities is of each individuals investors personal preference.
Most funds still hold some sort of tobacco equities as dividend yields tend to be high with reoccurring revenue streams, however due to the ESG credentials some fund managers are starting to shift away from these types of equities. My original thesis was purely on the income distribution hoping to reinvest those earnings into future new stocks. Historical dividend results can be found here.
The groups has some recognisable brands that include: John Player Special, Davidoff cigarettes, Lambert & Butler, Winston, Kool and Golden Virginia (The world best selling hand rolling tobacco) together with Rizla (The world best selling rolling paper). Then there is the Cigar brands Backwoods & Dutch Masters.
Like other rivals within this space there is a shift to finding new revenue streams and Imperial is doing just that with its Next Generation products like: Blue, Pulze and Zone X. Click here for further insight.
Then there are other possible scenarios like the cannabis craze that is already happening in the USA and Canada, Netherlands.
New products developments or collaborations with other groups may offer further potential to developing other revenue streams, especially as worldwide tobacco sales decline further in the coming years.
Imperial Brands Average five year share price
The average share price over the last five years (08/2019 to 08/2024) for Imperial Brands (IMB) sits between:
The lowest point of £12.03 on 30/10/2020 during the pandemic.
To the highest of £22.56 on the 12/09/2019.
Based on my own personal experience looking at a long term hold, today I would be looking to purchase additional shares around the £16.50 to £18.00 price target.
The ideal exit strategy would be to hold for 10-15 years before selling at a target sell price between £35.00- £39.50.
Imperial Brands Dividend
Imperial Brands distributes a quarterly dividend paid in the months of: March, June, Sept & December.
Q2 2024/25 dividend has been declared of £0.2245 payable on 30/09/24 (Ex-div on 22/08/24)
Total dividend per share for the previous years:
2023 £1.46
2022 £1.41
2021 £1.39
2020 £1.37
2019 £2.06
P/E ratio is 7.79 (29/09/24)
Dividend yield 5.76% (29/09/24)
1, Tobacco stocks tend to be one of the highest dividend paying equities due to reoccurring revenues
2, Next Generation products are generating £50+ million per year
Total income received from holding 350 shares is £3,688.60 in just over 7 years.
To see how this IMB income affects the totals for 2024 please click here
For dividend analysis can be viewed in the file below:
FTSE 100: IMB
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