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Whilst I realise we have 2 bigger and 2 smaller divis does anybody think they may try and increase the smaller 2 divis once more in time ?, I like 4 divis a year but im not too sure even why they have 2 bigger ones and 2 smaller ones rather than than just a bigger final etc and 3 smaller equal ones ?.Anyway its the GSK final big one coming next for me so once that goes ex divi i will get some more of these, so if the IMB gods can tread water in Feb before rocketing up in march it would be appreciated.
I'm moving more and more out of funds and into into divi stocks. Also big names on the Nasdaq looking less attractive to me.
I'm moving more and more out of funds and into into divi stocks.
Riskingit yes I will lol when wife returns from China will have a few weekends away on the divi
I bought in 2019 so I did get two nice divis before they cut it
I'm sure you will console yourself Jing when the big fat div is paid - always makes my day when the two biggies are paid
Thronegames taken on board what you said about recent rise and divi dodge in my 60s now but never to old to learn
Do think stock market a lot more complicated now then when I started to take an interest back in the 80s. With the new co and direction the company is taking let's hope the sp starts to rise no more divi dodging on this stock for me!!
Jing
I didn't sell either this time. The drop isn't so bad too. Let's hope it will rebound tomorrow.....
Jing it confirms my personal theory that the 'divi dodge' works if there has been a recent downward trend in SP; i.e some existing shareholders use the ex div date as an exit. If there has been a recent upward trend then sentiment dictates that new shareholders will use it as an entry point. This is my own humble opinion based on observation over the last couple of years. I also think that because the next two dividends are the two smaller ones, there will be less of an upward trend until we approach the Nov. ex d date. All based on my own speculation on shareholder psychology and observation. So interesting though! Still learning.
AK22
Have dodged the divi in the past but gave it a miss this time even if I had sold at its high of 1818p which we never do lol it still would not of been viable I think the days of dodging this divi are over I only see one way for this sp to go is up in due course I am sure we will find out the reasons why
Good luck all
The drop in the SP is roughly equal to the dividend that will be received (the drop is actually a bit higher but once you take trading costs into account then the trade is neutral). Hopefully IMB will resume its upward trajectory in a few days as long as the market remains stable and we don't have any major events coming through (Russia invading Ukraine etc.)
Whoops spoke to soon shes going down, lets see what happens the next few days , anybody make a profit selling before Ex Divi date ? or is it all a matter of hind site is a perfect science etc etc , lets see what happens over the next few days .
Well she stayed up yesterday just so I suppose thats a plus for going with the divi at least on this share.
The reason IMB used to have a dividend cover of 1 was that they made around £2bn in operating profit and paid just under £2bn in dividends (just over £2 a share at the time). What the dividend cover figure didn't capture though was that another £1.3bn or so was added back to operating profit in that cash flow statement due to the non-cash expense of amortisiation/depreciation. It was this £1.3bn buffer that gave IMB headroom to pay interest, cover capex and slowly chip away at the debt. I think it got to the point where a lot of investors weren't happy with the speed of the debt reduction so Alison was shown the door and the dividend was subsequently slashed by a third. They also sold off our wonderful cigar division. Going forward I think there is a good case here for resumed dividend growth.
Just been looking back at previous dividends and they were much higher but the dividend cover was less than 1. So how can a company sustain that? The dividend cover for 2022 is estimated at around 1.75 so there is scope to increase. But that said see below for comments taken from the final results on Nov 16th. So FY2023 we should see a ig change hopefully!
"Our five-year plan to transform Imperial is divided into two distinct periods. The year ahead will complete the two-year strengthening phase, with further investment in our five priority markets and NGP pilots, the embedding of new ways of working and cost-saving initiatives. This period builds the foundations for the subsequent three-year phase, which focuses on the acceleration of returns and sustainable growth in shareholder value."
AliveKicking I like your post. I find the interpersonal mudslinging on some boards irritating and I just scroll past. I like to read peoples opinions on dividend strategies. I will hold IMB for the dividend and I have decided to do the opposite of the 'dividend dodge' strategy discussed previously on this board. IMB is one of my biggest holdings. I plan on transferring funds to my stockbroking account and if IMB falls by significantly more than the dividend amount I may buy more.10% return can't be ignored. I think dividend strategy depends on ones time horizon and I'm looking forward about 5 years. It seems like a no-brainer to me unless another black swan event occurs. ATB.
Glad to see im not alone alwaysabeliever, I see the madness on the news how Oil companies etc are paying back huge amounts to share holders when really we are getting only back 50% from 2019 levels ! the media never say that or more importantly never say great big results mean extra billions getting taxed at a special vast 40% tax rate which goes straight to no11. Personally I would rather have a full divi than a meagre 4% increase and meaningless share buy backs on my oil shares .Anyway its fags that matter now fingers crossed after 16/2.
Excellent post AliveKicking. I believe that you have satisfactorily answered the majority of your own questions. And yes Covid amongst other things has provided an ideal opportunity for companies to reduce dividends. It is inevitable that dividends and will increase once again in the future if companies can see evidence that they are losing shareholder confidence. Back in July 1999 BP shares were approximately £6 and have provided a substantial overall loss bases on todays share price of £4. Investors have stayed with BP due to the historically high and increasing dividend levels. BP is not an exciting share for growth and investors will depart in the droves if dividend levels remain at what now can be considered relatively low. Imperial is a similar story but they are still paying higher levels of dividends in percentage terms.
I have just re joined LSE having left last year after getting very tired and bored of the constant amount of abuse posters got on various sites like Lloyds GSK, Shell etc etc if one ever criticised the leadership or suggested something different to any main stream views... I was interested therefore to read peoples theory's on selling before ex dividend etc here and buying back later .Must admit I have just bought a chunk of shares here for the dividend and will sell some GSK once they have gone ex dividend to buy more of these as the divi is now better. GSK was a stable divi but personally I dont like the idea of the pending break up and have little faith in the Dame running the show . Being retired I like the dividends as 0.1% interest in a bank account etc dont pay the bills and like most people I like the hope/Dream of a constant divi amount to live on .To this end Does anybody here think the dividend in 2022-2023 will go back over £2 a year as in the past ? or is the new Management strategy going to be to consolidate ?.In my own opinion Covid19, Green washing, Wokism and media opinion etc etc seems to be a wonderful smoke screen/driver for companies like BP, Shell and many others to cut back on historic dividend levels no matter how big their new results are .Wait and see the back lash against the banks in a few weeks and how normal working share holders are bashed for daring to buy shares in the companies to just make ends meet..10 years ago if I put £10k in a building society at 10% interest and got £1k interest a year that was ok nobody would say anything it was good business sense..If I put £10k now into Shell/lloyds I am a rich multimillionaire abusing poor people and should get all my dividends taxed further !!! The world and wokism has gone Bonkers ! .The wokey tail is wagging the dog .Anyway roll on ex divi day I think the share price will stay up personally but time will tell.But here is a question if I am totally wrong and loose half my money !!! will the moaning press demand the government bail me out ?? ? I dont think so !.
Yes Tom your right advertising bans has made little difference to tobacco sales it may of had the opposit effect of attracting new smokers as they wonder what is behide the shutters of tobacco kiosks of course our governments would not tell as if this was the case
Could be a few interesting days ahead if the Russian Ukraine situation escalates
I was under the impression that advertising bans inadvertently helped tobacco co's in the past? The established players got to keep their market share without having to spend any money on marketing. No advertising = no new players gaining a foothold in the market.
How much business do we do in Switzerland? The Swiss have just banned ALL tobacco advertising. It can't be a huge market for us, surely???
BATS saw decline from cigs revenue; increase from new gen products. Wonder how this trend will translate to IMB performance?
Read across from BATS superb results probably helping IMB also.
Yes jings mate, only three more days to sell before it goes ex-divi. If anyone likes to dodge better getting ready now. I wonder how much higher can this go before the unpredictable drop on Thursday. It's really very hard to decide whether I should do it again or not. Will it be a huge dive this time round or the fall will be less than the dividend??.......so, decisions decisions......but anyway, good luck to everyone whatever you have decided to do and goodnight.