Daily Stock Pick: Imperial Brands
A portfolio of stocks I've been building since September 3, 2019, is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fourth of five consumer defensive sector stocks striving to join my Volio folio. This could be my twenty-eighth pick for Volio!
That consumer defensive sector includes twelve industries all related to providing convenient packaged goods we've just gotta have. Industries like: beverages, brewed, soft, or distilled; confectioners; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; tobacco.
My subject today is a large-cap tobacco industry representative named, Imperial Brands PLC. Their trading ticker symbol is IMBBY. This is my first report about Imperial Brands PLC.
Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco) with total fiscal 2019 volume of 244 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 is a leading seller of cigars in several countries, although some of these assets may be disposed of in the foreseeable future.
Recent acquisitions in the United States make Imperial the third-largest manufacturer in that market. Through its acquisition of Altadis, the firm has a logistics platform in Western Europe.
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 headquartered in Bristol, the United Kingdom.
I use three key data points to gauge dividend equities or funds like Imperial Brands PLC:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
IMBBY Price
Imperial's price per share closed at $18.67 yesterday. A year ago their price was $34.34. Thus, in the past year, their market price decreased $15.67 or just about 84%.
Assuming Imperial's stock trades in the range of $15 to $25 this next year, its recent $18.67 price might rise by $1.33 to reach $20.00 by March 12, 2021, assuming upward price momentum returns.
IMBBY Dividends
Imperial's latest declared quarterly dividend was $0.9335 payable April 6. That $0.93 Q dividend varies and represents an annual payout of $2.67 per share to yield 14.31% at yesterday's $18.67 share price.
IMBBY Gains?
Adding the $2.67 annual estimated dividend to my $1.33 estimate of Imperial Brands PLC price upside shows a $4.00 potential gross gain, per share, which will be reduced by any costs to trade those shares.
Put a little over $1,000.00 today invested in Imperial Brands PLC at its recent $18.67 price, would buy 54 shares of IMBBY.
A $10 broker fee paid half at purchase and half at sale could cost about $0.19 per share.
Subtract that $0.19 brokerage cost from the estimated $4.00 gross estimated gain per share results in a net gain of $3.81 X 54 shares = $205.74 or a 20.55% net gain on a $1,008.18 investment.
Therefore, Imperial Brands PLC, whose trading ticker symbol is IMBBY shows a possible 20.55% net gain including a 14.31% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Imperial Brands PLC, is worth your time and money.
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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