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Imperial Brands still offers 9% yield despite dividend cut
Cigarette maker Imperial Brands (IMB) has cut its 2020 dividend by a third as it tries to find ways to reduce debt pressures amid the coronavirus crisis and a poor showing for sales of its next generation vaping products.
This represented the first time the company had failed to increase, let alone cut, the dividend since it was spun out of the conglomerate business Hansen in 1996.
The stock was trading on a prospective 11.5% yield before the announcement. The shares now offer a near-9% yield based on guidance from Imperial Brands for 137.7p in dividends for the year.