Current Analysis: Imperial Brands

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Imperial Brands (IMBBY) is the world's fourth-largest Tobacco company (excluding China National Tobacco) with total fiscal 2023 volume of 198 billion cigarettes sold in more than 160 countries.

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, named Altadis.

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

Imperial Brands was founded in 1901 and is registered in England and Wales and  headquartered in London and Bristol, England

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

The key three 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, IMBBYs share price fell about 7.6% from $25.79 to $23.84 as of Tuesday’s market close.

If Imperial Brands  shares trade in the range of $18.00 to $28.00 this next year, its recent $23.84 share price might rise to $26.00 by next year. Of course, Imperial Brands price could drop about the same $2.16 estimated amount, or more.

My annual upside estimate of $2.16 however, is $2.00 below the median of one-year price targets from 2 analysts tracking Imperial Brands.

 

IMBBY Dividend

Imperial Brands PLC has paid variable Quarterly dividends since February 28, 2003. IMBBY’s most recent declared Quarterly dividend, of $0.64 will be paid January 8th to shareholders on record as of November 24th.  A forward looking $1.80 annual dividend yields 7.65% at Tuesday’s $23.54 share price,

 

IMBBY Returns

To put it all together, add the  annual dividend of  $1.80 to the price upside of $2.16 to find a $3.96 gross gain.

At Tuesday’s $23.54 share price, a little under $1000 would buy 42 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.24 per share.

Subtracting that likely $0.24 brokerage cost from the $3.96 estimated gross gain per share produces a net gain of $3.72 X 42 shares = $156.24 for a 16% estimated net gain.

You might choose to pounce on Imperial Brands PLC. IMBBY is a one-hundred twenty-two year old English tobacco company noted as the fourth largest in the world (excepting China). Furthermore, the estimated $76.50 of dividend income from $1k invested is about 3.25 times greater than Tuesday’s Imperial Brands PLC single share price.

The exact track of Imperial Brands PLC ongoing future prices and dividends are yet to be known.

Remember the true value of any stock is best realized through personal ownership of shares.


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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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