Among the popular UK stocks, Imperial Brands (GB:IMB) offers a dividend yield of 7.18%, surpassing the Consumer Sector average of 2.13%. IMB stock will go ex-dividend next month on August 22, allowing investors to grab it and be eligible for the next dividend payout. The upcoming dividend payment of 22.45p per share is scheduled for September 30, reflecting a 4% increase compared to the same period last year.
TipRanks offers various tools to assist users in finding appealing dividend stocks that match their investment preferences. We used TipRanks Top Dividend Shares tool for the UK market to select IMB stock. This tool provides a comprehensive list of high-dividend-paying companies, including various criteria for users to filter stocks.
Additionally, TipRanks also provides a Dividend Calendar tool that simplifies the process of screening and selecting stocks with upcoming dividend payment dates.
Imperial Brands is a leading global tobacco manufacturing company, with well-known brands like West, Davidoff, Gauloises, and more.
Let’s take a look at the details.
How Often Does Imperial Brands Pay Dividends?
Imperial Brands pays quarterly dividends to its shareholders, with equal payments in May, June, September, and December.
In 2023, the company distributed a total dividend of 146.82p per share, compared to 141.17p per share in 2022. For the first half of 2024, the company paid dividends of 44.9p per share, which was 4% higher than the interim payment of 2023.
Along with the half-yearly results of FY24, the company highlighted that cash generation remains its key focus area. During this period, the company reported a free cash outflow of £523 million, as improved working capital was offset by increased cash taxes. However, Imperial Brands remains on track to deliver significant inflows by the end of FY24.
The company further stated that it will complete its ongoing share buyback program of £1.1 billion in FY24. This marks a 10% increase compared to the buyback in 2023.
Is Imperial Brands a Good Stock to Buy?
According to TipRanks consensus, IMB stock has received a Moderate Buy rating based on two Buy and three Hold recommendations. The Imperial Brands share price target is 2,160p, which indicates a modest upside potential of 3%.
