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27/3/2020
08:22 | 32campomar: Citi believe the dividend is safe, £2.07 when the share price is £13.30! That's 15.4%! With so many pulling dividends, could income funds be forced to buy in?
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21/3/2020
01:21 | lendmeafiver: Perhaps when I said “just think of the dividend” I should of said “please consider the current dividend yield for those of us who are fortunate to have purchased at the recent share price” hope that doesn’t offend and good luck to all.
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20/2/2020
11:19 | damp seaweed: I don’t know why IMB have unequal dividends. But it is quite observable that the share price tends to trade lower during the lower dividend half of the year. Though in fairness the summer months tend to be a bit fallow for many shares.
I sold out of IMB a few weeks ago for T/A reasons and for a bit of divi dodging. While today’s drop (currently 1730) is substantial. I’m looking for sub 1700 before getting excited.
The next set of results are due on 5th May. The forward commentary will be as important as the financial. My inclination is to to have a modest stake prior to these results and then review on receipt.
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05/2/2020
13:00 | wunderbar: Scrawl, you are correct, none of this is earth shattering - a £45m writedown in the value of it's vaping inventory and a likely £40m hit due to cost saving programme forced by regulatory uncertainty and negative press surrounding vaping does not warrant a 150p drop in share price (currently 1803p). Put simply IMB are warning £95m will be wiped off full year profits - in turn the market has wiped £1.42bn off the value of the company!
Truth be known the market is really punishing IMB for it's continued failure to maintain market guidance, always falling short - too many excuses in recent years have left us where we are today. Just look at the performance of BATS in 2019, up 23% whilst IMB fell 21% - reason for BATS impressive performance simply because it met or exceeded market guidance (undoubtedly a stronger player with quality management).
As for the dividend many people on here seem obsessed with the high yield and see IMB as an income stock - well I guess that all depends on your entry point noting share price has fallen almost 50% in past three years: 2017 (-11%), 2018 (-25%) & 2019 (-21%). Fact is during this time shareholders have seen significant capital erosion regardless of divi payments. I personally expect a divi cut and re-focusing on reducing debt.
As for the potential disposal of its premium cigar business this seems to be dragging on too long noting it was originally planned to be sold off by May 2020 (as part of their divestment programme first mooted almost two years ago). Given this time frame is fast approaching and there's still no concrete word of a sale you have to wonder if it's going to happen. IMB have always said the price has to be right or they won't sell - it was rumoured this division could fetch upto £1.5bn, maybe this is major sticking point with potential buyers.
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12/12/2019
13:38 | loganair: In IMBs situation in buying back their shares at well above the current share price a good allocation of capital by the management - I say it is a complete misallocation of capital by the management.
Other posters keep posting that IMB are ripe for take-over, who would take then over?
There seems to be only BAT.
Why would BAT wish to take over IMB as IMB tends to sell to the lower end of the market.
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29/11/2019
09:48 | muscletrade: Fm Motley fool
Imperial Brands shares have fallen 45% in two years. Here’s what I’d do now
Edward Sheldon, CFA | Thursday, 28th November, 2019 | More on: IMB
It’s fair to say Imperial Brands (LSE: IMB) shares have had a shocking run over the last two years. Back in late 2017, the shares were changing hands for more than 3,000p. Today however, Imperial’s share price stands at just 1,700p.
Personally, I’m down around 40% on my Imperial Brands holding (excluding dividends). It’s the worst-performing share in my dividend portfolio by a long way. That said, I’m not willing to give up on it just yet. Here are a few reasons I believe the FTSE 100 stock has the potential to rebound.
10% dividend increase
Firstly, while trading conditions have been challenging recently, the company’s full-year results, issued on 5 November, weren’t that bad in my view. For example, for the full year, tobacco and next-generation product (NGP) net revenue increased by 2.2%, while adjusted earnings per share only fell 1.6%. That’s certainly not a disaster.
Interestingly, the dividend was increased by another 10%, marking the 11th consecutive year of 10% growth. To my mind, this suggests management is not too worried about future profitability.
Insider buying
It’s also worth noting a number of top-level directors have purchased shares in the company recently. In late September, five of them, including outgoing CEO Alison Cooper, CFO Oliver Tant, and chairman Mark Williamson, added to their holdings, spending around £400,000 on stock. This suggests these insiders are confident about the future and expect the stock to recover.
More recently – and this is perhaps most interesting – Group Innovation and Science director David Newns bought £1.4m worth of stock on 14 November. Given that he’s likely to have a good understanding of the potential of Imperial’s new products, I see the fact he’s spending his own money on shares (and a lot of it too) as a good sign.
Woodford selling
I’ll also point out that Imperial’s recent share price weakness could be related to the liquidation of Neil Woodford’s Equity Income fund. We know that Imperial was a key holding for Woodford. With the £3bn fund now being wound up, BlackRock – who is responsible for selling all the holdings – will have needed to offload a significant number of IMB shares (potentially £100m+ worth), which will have put pressure on the share price. When the Woodford debacle is finally put to bed early next year, we may see IMB shares bounce.
Crazy valuation and yield
Finally, just look at the valuation and yield. Right now, IMB shares trade on a forward-looking P/E ratio of just 6.4 and sport a monster dividend yield of 12%. When you consider the median FTSE 100 forward P/E ratio is 15.5, and the median FTSE 100 trailing dividend yield is just 3%, those metrics seem crazy to me. Imperial’s dividend yield is four times the median Footsie yield!
All things considered, I believe Imperial Brands shares have the potential to rebound in the near future. For this reason, I think it’s worth holding on to the stock.
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23/11/2019
14:26 | spud: https://investomania.co.uk/2019/11/do-ftse-100-shares-barclays-imperial-brands-and-standard-life-aberdeen-have-sound-recovery-prospects/
Do FTSE 100 shares Barclays, Imperial Brands and Standard Life Aberdeen have sound recovery prospects?
The share price performances of Barclays PLC (LON:BARC) (BARC.L), Imperial Brands PLC (LON:IMB) (IMB.L) and Standard Life Aberdeen PLC (LON:SLA) (SLA.L) have been disappointing of late in my opinion.
Barclays, for instance, may have surged higher in recent weeks. But it is still flat on its past 12 months performance, which leaves the bank trading on a P/E ratio of 7.6. This suggests to me that it could offer good value for money while it is forecast to post a rise in EPS of 11% next year.
The bank’s performance could be hurt by global macroeconomic uncertainties to my mind. I think its share price may be volatile over the near term as a result, but that its current valuation may factor in many of the risks it faces. Therefore, I’m upbeat about Barclays’ potential to post improving capital returns over the long run.
Imperial Brands may continue to be an unpopular share in the short run to my mind. I think a new CEO may look to make changes to its business model, since its recent trading updates have been below expectations in terms of the growth rate of its next-generation products.
A new CEO may, for instance, look to ramp-up investment in reduced-risk products. I wouldn’t be surprised if this leads to a lower dividend outlook in the short run. But in the long run, this may create a stronger business that can more easily reward shareholders.
I’m not expecting a rapid rise in the Imperial Brands share price in the short run. But I do feel that it could beat the FTSE 100 over a multi-year time period.
Standard Life Aberdeen has gained ground in the last few months after a challenging period saw its stock price decline over the past few years. Investors seem to be getting onboard with the company’s rationalisation strategy, as well as the investment it is making in new fund launches and financial products.
I feel that the company’s prospects could be impacted by changes to the global macroeconomic outlook. Therefore, I’m expecting volatility to be high, but also believe that Standard Life Aberdeen’s 7% dividend yield is attractive at the moment.
spud
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30/10/2019
09:33 | loganair: What I am saying is that there is so much negativity around vaping as the tobacco companies are saying vaping is to get people off tobacco smoking when in reality having so many different flavours vaping is to bring in new younger people to replace the older tobacco smokers. The tobacco companies have been caught with a huge lie, with their trousers down as it were.
Just look at IMB share price - IMB is the weakest of all the major tobacco companies.
Buying back huge numbers of shares when they would be better off paying down debt with this money.
When the IMB share price was £24, I posted that I would take a serious look at IMB when the share price hits £15. I was decried and dismissed out of hand that the IMB share price wouldn't get any where near the £15 level when today the share price is under £17.50 and still in a downward trajectory.
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29/10/2019
16:18 | polaris: hTTps://uk.advfn.com/stock-market/london/imperial-brands-IMB/share-news/Imperial-Brands-PLC-Capital-Allocation-Sharehold/80281439
That's the link to the dividend policy announcement for FY2019 and forward looking. I think a lot of analysts took the progressive dividend policy to mean a cut when IMB state themselves that it will increase from the current level, taking into account the underlying business.
IMO that means the dividend may be frozen from end FY2019 at around 215p (a 10% increase on FY2018) but is a long way from any kind of dividend cut policy, as seems to be priced in. That's over 12% yield at current share price ..
Freezing the dividend at 215p, as opposed to the old 10% increase YoY policy, would release around £200M p.a. immediately to perform buybacks or directly reduce debt. Then there is the disposal programme.
If they did keep the dividend constant for a few years to deleverage then a rating of 8-9% would be reasonable, implying a share price target of £24-26.50.
The recent price target of 1600 also gave no timescale. At 215p dividend per year then the effective price paid today for the share in 12 months time is 1530p...as you get 215p in dividend during that time. What does the broker price target actually mean? I can't get 2% capital return in a savings account p.a. The same return in IMB on capital employed would lead to a share price reduction of around 180p, taking into account the dividend payment over 12 months.
But, hey, what do i know? Using logic seems to be frowned upon in modern society.
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03/9/2019
17:11 | galatea99: Article by Robert Stephens, from "Investomania":
Imperial Brands PLC
Imperial Brands PLC
At the time of writing, the Imperial Brands PLC (LON:IMB) (IMB.L) share price currently has a dividend yield of around 9.4%. I’m struggling to find too many FTSE 100 stocks with yields that are that high, and also potentially affordable given the near-term prospects for the business.
Further, the company has a solid track record of dividend growth, which suggests it could continue to increase dividends per share over future years in my view.
Imperial Brands, of course, has become increasingly unpopular among investors. They seem to be concerned about the company’s financial outlook at a time when cigarette volume declines are continuing to take place.
In my view, further volume declines could be ahead. Demand for cigarettes is falling, with health concerns and alternatives such as e-cigarettes gradually producing increasingly challenging operating conditions for tobacco companies. This trend has been present for a few years, and is widely expected to continue over future years.
In the meantime, Imperial Brands’ strategy of raising prices could mean that the sales and profitability it generates from cigarettes continues to rise. And with the growth potential of e-cigarettes, I think that the industry may have a more positive long-term outlook than the stock market appears to be pricing in.
Sure, Imperial Brands may continue to be an unpopular stock among investors. However, with such a high dividend yield, its total returns may be relatively impressive – particularly at a time when there are fears surrounding the world economy. Its track record of growing EPS and dividends may mean that it is able to offer defensive growth in an increasingly uncertain global economy.
Therefore, even though volume declines are set to continue, Imperial Brands’ shares could offer long-term investment appeal in my eyes. I feel that the stock has a large margin of safety, as well as growth potential from new products such as e-cigarettes and the scope for price rises in cigarettes.
Https://investomania.co.uk/2019/09/why-does-the-imperial-brands-share-price-have-a-9-dividend-yield/
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PLUS1
