Daily Stock Analysis: Imperial Brands

Imperial Brands PLC with the ticker IMBBY, is a Large-cap tobacco company operating, as I said, in the consumer defensive business sector. This is the second of five consumer candidates competing for the forty-sixth slot in the Viital folio. It is my first ever report on Imperial Brands for my Viital portfolio. However, I have also reported on Imperial for one or more of my previous portfolios.

Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco) with a total fiscal 2021 volume of 232 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, Altadis. 

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

In addition, the company is involved in the management of a golf course; distribution of pharmaceuticals, POS software, and published materials and other products; printing and publishing activities; and provision of long haul transportation, industrial parcel and express delivery, advertising, and support management services. 

Further, it owns the trademarks; and retails its products. 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 1901 and is based in Bristol, the United Kingdom.

Three key data points gauge any dividend equity or fund such as Imperial Brands PLC:

(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

Imperial’s price per share was $23.18 as of yesterday's market close.  One year ago its price was $22.30. Thus, Imperial’s share price increased by $0.88 or about 4% in the past year. 

If Imperials stock trades in the range of $20.00 to $30.00 this next year, its recent $23.18 share price might rise by $3.82 to reach $27.00 by next year. My $3.82 upside estimate is $1.00 below the one-year price target from 1 analyst tracking Imperial for brokers.
 

IMBBY Dividends

Imperial’s most recently declared a variable quarterly dividend of $0.26 is payable on October 7th, to shareholders on record as of August 18th.  (There are only a couple of days left to get in on this payout.)

Since February 28, 2003 

Imperial has paid quarterly variable dividends.  The current forward-looking annual dividend of $1.80 projects an annual yield of 7.78% as of yesterday's $23.18 share price.
 

IMBBY Returns

Adding the $1.80 Imperial annual dividend to my estimated one-year price upside estimate of $2.82 shows a $4.62 potential gross gain, per share, to be reduced by any costs to trade Imperial shares.  

At yesterday's $23.18 closing price, a little over $1000 would buy 43 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us $0.23 per share.

Subtract that maybe $0.23 brokerage cost from my estimated $4.62 gross gain estimate per share results in a net gain of $4.39 X 43

shares = $188.77, for an 18.8% net gain including a 7.78% forward-looking annual dividend yield. 

Over the next year, our $1K investment in Imperial shares should generate $77.80 in cash dividends. Of course, a single share of Imperial stock bought at yesterday's $23.18 price is over 3 times LESS than the dividend income from our $1000.00 investment. 

So, by my dogcatcher ideal, this is prime time to pick up Imperial Brands PLC  shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 3.36 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of Imperial Brands PLC. Only time and money invested in this stock will determine its market value.


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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 solicitation, ...

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