Image Source: Pixabay

Imperial Brands (IMBBY) is the world's fourth-largest international tobacco company (excluding China National Tobacco) with a total fiscal 2022 volume of 221 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 the 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.

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, Imperial’s share price rose 8.44% from $20.50 to $22.23 as of Wednesday’s market close.

If Imperial’s stock trades in the range of $20.00 to $30.00 this next year, its recent $22.23 share price might rise to $27.00 by next year. Of course, IMBBY’s price could drop about the same $4.77 estimated amount, or more.

My upside estimate of $4.77, however, is $7.00 under the target price estimate from one analyst tracking the stock.

IMBBY Dividend

Imperial Brands PLC has paid variable semi-annual dividends from February 28 2003 to July 8, 2015, at which time the dividend frequency was changed to Quarterly. IMBBYs most recent Q dividend, payable October 6th to shareholders of record August 17th, is $0.27. Its estimated annual dividend payout of $1.74 is projected to yield 7.83% per Wednesday’s closing price.

IMBBY Returns

Adding the $1.74 anticipated annual dividend to Imperial Brands PLC estimated $4.77 possible price upside, reveals a $6.51 potential gross gain per share for the coming year.

At Wednesday’s $22.23 closing price, a little over $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.

Subtracting that maybe $0.22 brokerage cost from my estimated $6.51 gross gain per share makes a net gain of $6.29 X 45 shares = $283.05 or about a 28.25% net gain.

This may be the time to pounce on Imperial Brands PLC shares. But beware, IMBBY is a tobacco and logistics company doing business in a volatile environment. However, the estimated $78.30 dividend from $1000 invested comes in at just over 3.5 times the recent $22.23 single share price. The choice is yours.

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

More By This Author:

Stock Analysis: Hengan International Group
Daily Stock Analysis: Conagra Brands
Current Analysis: British American Tobacco (BTI)