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Even if the price does not move, most shareholders will probably be quite happy to collect the 10% dividend each year.

All of the same issues such as a reducing number of smokers were there a few years ago when IMB was at £40. The analysts who follow IMB are forecasting an average price for IMB of £30. That seems like a sensible price for IMB given the excellent cash flow and dividend per share.

If the stock market valued IMB at £40 a few years ago, when the business fundamentals were not much different, then there is no reason why £30 could not be reached in a few months. And most of the analysts are also predicting an average target price of £30 for IMB.

If absurd investments like Tesla and Bitcoin that pay no dividend can rise 1,000% in a few months then there is no reason why a solid company like IMB on a PE of 6 and a dividend yield of 10% should not double in a few months.

The IMB share price was £40 a few years ago and not much has changed with the fundamentals of the business since then. I can quite easily see IMB back at £30 within the next few years, and that is what most of the analysts are also saying. And while the shareholders are waiting for it to reach £30, they will also get a 10% dividend every year. Seems like an excellent investment.

IMPERIAL BRANDS have now 17 analysts covering the company. The target price ranges between £36.00 and £21. and has a mean target at £30.19. Now with the previous closing price of £14.21 this would indicate that there is a potential upside of 112.4%.

https://www.***************************/imperial-brands-ord-10p---consensus-indicates-potential-112.4-upside/412962676

There was no RNS showing any selling of any M&G shares.

The RNS shows M&G holdings in the shares of another company. This is just a standard change of holdings that asset managers such as M&G do every day.

M&G has an annual dividend of about 18p, made up of a 12p final and a 6p interim, and so at present M&G shares have a far higher yield and are much better value than similar shares such as Standard Life or Phoenix which have a yield of about 7%.

If M&G shares were to yield a similar 7%, M&G shares would be about £2.60.

M&G also benefits from a very resilient cash flow that other similar companies such as Standard Life and Schroders do not have. About 90% of the M&G dividend is already covered for the next three years by the with-profits book, and annuities, which total about £130 billion of heritage money.

M&G also plans to generate £2.2 billion of capital over the next 3 years which is equivalent to about 80p per share over the next 3 years, so it is quite possible that will also be some special dividends in the next few years in addition to the 18p annual dividend.

I actually think even £2.60 would quite undervalue M&G shares. A dividend of 18p and a yield of about 6% would suggest that a fair value for M&G shares is about £3.

Any idea what the article in The Times said ? Why did they say avoid ?