FTSE 100-listed Imperial Brands (GB:IMB) is a lucrative dividend stock for regular income-seeking investors. The stock goes ex-dividend on February 15, 2024, with the payment date set for March 28, 2024. IMB pays a dividend of 51.82p per share, reflecting a yield of 7.53%, significantly higher than the sector average.
TipRanks provides a range of tools to help users identify attractive dividend stocks that align with their investment choices. We leveraged the TipRanks’ Top Dividend Shares page for the UK market to identify IMB stock.
Here’s Why You Should Consider Imperial Brands
Imperial Brands is a British multinational tobacco company. It is the world’s fourth-largest international cigarette company by market share and the world’s largest producer of fine-cut tobacco and tobacco papers.
The dividend is not the only silver lining for the stock, IMB earns a “Perfect 10” score on the TipRanks Smart Score rating system. This implies that IMB is well-positioned to outperform market expectations. Moreover, IMB stock commands a “Strong Buy” consensus rating, as per the TipRanks Share Forecast & Price Target tool.
Importantly, Imperial Brands follows a progressive dividend policy. Its upcoming final dividend of 51.82p per share represents a 5% jump over the prior year period. Overall, the company’s annual dividend marks a 4% rise to 146.82p. Furthermore, IMB’s board raised its share buyback plan by 10% for Fiscal 2024, promising more shareholder returns in the days ahead. Imperial Brands aims to shell out £2.4 billion worth of shareholder returns in Fiscal 2024, up from £2.3 billion last year.
Is Imperial Brands a Good Stock to Buy?
On TipRanks, IMB stock commands a Strong Buy consensus rating backed by six Buys and two Hold ratings. The Imperial Brands plc share price target of 2,149.38p implies 13.7% upside potential from current levels.
Ending Thoughts
Imperial Brands has headed into the fourth year of its five-year strategic plan. In the first two years, IMB strengthened its business fundamentals, and in the third year, the company enhanced its growth opportunities. In 2024 and 2025, IMB aims to move ahead with its roadmap to enhance its NGP (Next Generation Products) offerings, focusing on potentially lower-risk alternatives to smoking. Thus, Imperial Brands offers a compelling investment option as the ex-dividend date draws near.
