Advertisement
U.S. markets open in 4 hours 9 minutes
  • S&P Futures

    5,306.00
    -2.25 (-0.04%)
     
  • Dow Futures

    40,150.00
    +6.00 (+0.01%)
     
  • Nasdaq Futures

    18,490.50
    -13.25 (-0.07%)
     
  • Russell 2000 Futures

    2,134.90
    -3.50 (-0.16%)
     
  • Crude Oil

    81.59
    +0.24 (+0.30%)
     
  • Gold

    2,213.70
    +1.00 (+0.05%)
     
  • Silver

    24.52
    -0.23 (-0.94%)
     
  • EUR/USD

    1.0782
    -0.0048 (-0.44%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.96
    +0.18 (+1.41%)
     
  • GBP/USD

    1.2589
    -0.0049 (-0.39%)
     
  • USD/JPY

    151.4550
    +0.2090 (+0.14%)
     
  • Bitcoin USD

    70,703.01
    +934.23 (+1.34%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,956.27
    +24.29 (+0.31%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Imperial Brands PLC (LON:IMB): Dividend Is Coming In 9 Days, Should You Buy?

Investors who want to cash in on Imperial Brands PLC’s (LSE:IMB) upcoming dividend of £0.28 per share have only 9 days left to buy the shares before its ex-dividend date, 24 May 2018, in time for dividends payable on the 29 June 2018. Should you diversify into Imperial Brands and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Imperial Brands

5 questions to ask before buying a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is their annual yield among the top 25% of dividend payers?

  • Has it paid dividend every year without dramatically reducing payout in the past?

  • Has the amount of dividend per share grown over the past?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Will it be able to continue to payout at the current rate in the future?

LSE:IMB Historical Dividend Yield May 14th 18
LSE:IMB Historical Dividend Yield May 14th 18

Does Imperial Brands pass our checks?

Imperial Brands has a trailing twelve-month payout ratio of 136.79%, which means that the dividend is not well-covered by its earnings. However, going forward, analysts expect IMB’s payout to fall into a more sustainable range of 76.15% of its earnings, which leads to a dividend yield of around 7.42%. Furthermore, EPS should increase to £1.63, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Relative to peers, Imperial Brands produces a yield of 6.17%, which is high for Tobacco stocks.

Next Steps:

Keeping in mind the dividend characteristics above, Imperial Brands is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three fundamental aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for IMB’s future growth? Take a look at our free research report of analyst consensus for IMB’s outlook.

  2. Valuation: What is IMB worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether IMB is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement