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.

"8 Top Dividend Plays Held by Britain's Super-Investor" reveals the favorite income stocks held by Neil Woodford -- the City legend who has thrashed the FTSE 100 during the 15 years to 2011 by favoring dividend-paying blue chips.

Just click to download the free Woodford report today. But hurry, this report will remain available for a limited time only.

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

The article High-Yielding Imperial Tobacco Boosts Revenue originally appeared on Fool.com.

Sam does not own any share mentioned in this article.The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.