Imperial Brands Announces New Dividend Policy

High-yielding FTSE 100 stock will adopt a more flexible approach to dividends after the end of this financial year, and buy back £200 million of shares

James Gard 8 July, 2019 | 10:59AM

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High-yielding FTSE 100 income stock Imperial Brands (IMB) has changed its dividend policy and announced plans for a £200 million share buyback programme.

The company will stick with its target of a 10% rise in its dividend this year, ending September 30, but thereafter will adopt a flexible approach to increases. The dividend will still be increased, Imperial said, but will in future take into account more in line underlying business performance. This dividend policy will form part of a wider programme of capital allocation, Imperial said, “with any surplus cash flows to be returned to shareholders via share buybacks, enhanced ordinary dividends or special dividends, depending on market conditions”.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Imperial Brands PLC1,249.00 GBX-1.07
Royal Mail PLC184.75 GBX1.90
Vodafone Group PLC116.74 GBX0.64

About Author

James Gard  is content editor for Morningstar.co.uk

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