Imperial Brands PLC’s (LON:IMB) investors are set to receive a payment of £0.2245 per share on September 30th, resulting in a dividend yield of 7.3%. This payment will provide a nice boost to shareholder returns. Imperial Brands’ earnings easily cover the last dividend, indicating that the company is reinvesting earnings into the business for growth. EPS is expected to grow by 33.4% next year, which could result in a sustainable payout ratio of 46%. While the company has a long dividend history, it has been cut at least once in the last 10 years. Despite modest growth in distributions, historical cuts to payments may impact dividend stability. Imperial Brands has shown strong EPS growth of 8.5% per year over the past five years, making it a potentially appealing dividend stock. Overall, the company’s track record and growing earnings suggest that it is a strong income stock with solid potential. Investors should be aware of 2 warning signs for Imperial Brands and consider other factors when analyzing stock performance. This article by Simply Wall St provides commentary based on historical data and analyst forecasts, using an unbiased methodology. It does not constitute financial advice and Simply Wall St has no position in any stocks mentioned.
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