Daily Stock Analysis: Imperial Brands - June 2023 Snapshot

Imperial Brands (IMBBY) is the world's fourth-largest international tobacco company (excluding China National Tobacco) with total fiscal 2022 volume of 221 billion cigarettes sold in more than 160 countries.

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The firm holds a leading global position in the fine-cut tobacco and hand-rolling paper categories, and it has a logistics platform in Western Europe, Altadis.

Through acquisition, Imperial is the third-largest manufacturer in the U.S. and owns the Winston and blu brands.

The company was formerly known as Imperial Tobacco Group PLC and changed its name to Imperial Brands PLC in February 2016. Imperial Brands PLC was founded in 1636 and is based in Bristol, the United Kingdom.

Three key data points gauge Imperial Brands PLC or any dividend-paying firm.

They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

IMBBY Price

Over the past year, Imperial Brands price per share decreased about 0.9% from $22.37 to $22.15 as of Tuesday’s market close.

If IMBBY’s stock trades in the range of $20.00 to $34.00 this next year, its recent $22.15 share price might get up to $26.00 by next year. Of course, IMBBY price could drop about the same $3.85 amount, or more.

My upside estimate of $3.85 is about $8.00 below the one-year target price declared by one analyst tracking IMBBY for a broker.

IMBBY Dividend

Imperial Brands PLC recent $0.27 variable quarterly dividend multiplies out to $1.08 annually to yield 4.88% at Tuesday’s closing price.

IMBBY Returns

Adding the $1.08 projected annual dividend to my estimated $3.85 price upside, reveals a $4.93 potential gross gain per share for the coming year.

At Tuesday’s $22.15 closing price, a little under $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $4.93 gross gain per share makes a net gain amounting to $4.71 X 45 shares = $211.95 or a 21.2% net gain.

In the next year our $1K investment in shares of IMBBY could generate about $48.80 in dividends. Furthermore, a single share of IMBBY stock at Tuesday’s $22.15 closing price is just over one-half the income generated from $1000.00 invested.

So, by my dogcatcher ideal, this could be the time to buy Imperial Brands PLC  based on its estimated dividends for 2023. The dividend from $1k invested is 2.2 times greater than the IMBBY single-share price. Consider yourself alerted.

This may be a time to pounce on Imperial Brands PLC. But beware, its dividend and price are volatile, and about $33.50 under the stock’s all time $55.52 high posted March 31, of 2016.

The foregoing article is based on past history of Imperial Brands PLC. The only accurate measure of future performance is from active investment in the company.

 


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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