Imperial Brands Share Discussion Threads

[w1ndjammer] 20/2/2020 15:16

someone remind me to sell these if we ever get back above £20

WJ.

[gaffer73] 20/2/2020 14:47

Thanks, 72p with a bit of kicking as you say.

[cassini] 20/2/2020 14:08

gaffer73,

Yes, ex-divi, plus a bit of a kicking just for good measure...

[gaffer73] 20/2/2020 13:51

What's happened here, ex divi??

[scrwal] 20/2/2020 13:45

Damp , I don't think income investors are that concerned about the div being a bit back loaded, I'm not. The only problem for income investors is the coverage of the dividend and so long as that is fine then they are usually happy with things.
I own DLG and hate them paying a special div with the final div as it can give a massive hit to the price and I would be very happy if the special was actually spread over several tranches even if that is well into the following year.

Given the new dividend policy and new CEO I don't think equal quarterly payments will be on any agenda.

[poopypoopants] 20/2/2020 13:44

That's why I posed the original question - I recognise that they are not alone in paying uneven dividends, I just don't understand the reasoning for a company like IMB and I think it would make them more attractive if the dividends were level across the year. Also, I was thinking that because the larger dividends are so huge, there are probably people out there with stop losses that got triggered simply due to the dividend related fall, which has pushed the price lower.

[damp seaweed] 20/2/2020 13:26

Scrawl, I understand what your point. I think that why it feels a little odd, is that IMB have become a quasi bond, much like the Big Oil and the REITS. It is ex growth and I don’t expact its income is particularly seasonal, so it would make it more attractive if it provided a regular consistent string of dividends. Or even 4 quarterly dividends and a possible 4th qtr special dividend.
Stable income might make it less volatile and therefore more attractive to long term income seekers.

[scrwal] 20/2/2020 12:43

Damp - the dividends aren't that unequal , the two finals are 70% of the total div , a lot of companies go for one third interim two thirds final. IMB did this until they split the divs in half and made a quarterly payment. I think it's possibly only BATS and the oil companies who pay quarterly at the same rates and the oils only do that because they haven't changed the div for a few years.

[lendmeafiver] 20/2/2020 12:18

Someone said 1725 last night I think

[damp seaweed] 20/2/2020 11:48

Big trade went through at 11:23. Showing as a sell @1730.6p.
2.15m shares for a value of £32.7m.
Someone certainly want to shift position.

[damp seaweed] 20/2/2020 11:19

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.

[siriain] 20/2/2020 11:07

Wondering if we are going to break into the 16 bracket today.....hoping for a rally soon to get back above 1750.

[p0pper] 20/2/2020 10:50

Have FIL had assurances divi is not to be cut? or not to be cut by much? you don't invest that much without doing DD

worrying that usually the £ goes down and IMB goes up, not today

[dogwalker] 20/2/2020 10:40

Otherwise known as Fidelity ....so, yes, very interesting.

[luderitz] 20/2/2020 09:53

Really? Interesting.

[poopypoopants] 20/2/2020 09:52

Looks like I'm gonna have egg on my face at the end of the day - my price prediction certainly isn't looking likely at the moment! On the topic of the dividend, does anyone know why IMB stagger their dividend throughout the year with 2 big and 2 small (relatively speaking!) dividends? I understand why that would be the case with companies whose cashflows vary significantly with the seasons, but can't really see the rationale here

[1vrod] 20/2/2020 09:33

Just been announced by IMB that FIL Ltd Bermuda have taken a 5.1% stake in the company on the 18th February.

[pixtel] 20/2/2020 09:15

Cynically I think the share price will meander along sideways until the new CEO gets his cut price LTIP option shares later in 2020.
Like you say, a small div cut to pay off some debt would put IMB in the debt rating agency good books.
I recently looked closely at BATS plans for debt repayment and IMB could align with their debt ratios with a 20% cut.

[zztop] 20/2/2020 09:12

I guessed correct 1733 love it

[skinny] 20/2/2020 09:09

Re post 4205 - I'll go for 1733.80p :-)

[lendmeafiver] 20/2/2020 09:04

Predictable fall, I’m back in at 1736, hopefully it won’t go much lower.

[alex1621] 20/2/2020 09:00

I don't think a 20% trim of the dividend, along with revenues from the cigar business sale, applied to debt reduction, would be a bad move ... the vaping regulatory issue is a double sided coin, that may lead to less people quitting cigarettes, which would be a catalyst for a re rate. As would any positive news.

[spud] 20/2/2020 08:56

As is so often the case nowadays, selling pre ex-dividend and buying back the following day would have given a quicker better return.spud

[w1ndjammer] 20/2/2020 08:29

would be a disaster if divi cut, only worth holding for the divi, the share price is
never going to set the world on fire.

WJ.

[irenekent] 20/2/2020 07:57

Once we get a start date for the new guy & clarification on forward policy the shares will start to move, hopefully upwards. Today lets say 1791p close today.