High-Yielding Imperial Tobacco Boosts Revenue
LONDON -- Imperial Tobacco (ISE: IMT.L) released a positive trading update this morning, with shares up 25 pence, or 1.1%, at the time of writing.
Management praised "strong gains from our key strategic brands" -- which include Davidoff, Gauloises Blondes, West and JPS -- while revenue growth is being driven by "quality growth across [its] total tobacco portfolio."
Group net revenues are estimated to be up by around 4% at constant currency rates, with special mentions for the Eastern Europe, Africa & Middle East, and Asia-Pacific regions.
Stick equivalent volumes are expected to decline by up to 3%, in large part due to ongoing market weakness in Ukraine (cigarette) and Poland (fine cut tobacco) and compliance with international trade sanctions against Syria.
On a current-year forecast price-to-earnings ratio of 11.8% -- and forecast earnings per share growth of 9% -- the so-called "sin stock" looks good value for the money, even when pitted head-to-head against its rivalBritish American Tobacco, which is also performing well.
Full-year results are expected on Oct. 30.
Right now, Imperial offers a 3.7% dividend yield -- and boasts a current-year forecast dividend yield of 4.5% -- and is just one of a number of FTSE large caps that offers an income well ahead of what you can expect to receive from a standard savings account. If you are seeking other high-dividend opportunities, this special free report could assist your investment decisions.
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