If you’re an income investor scanning FTSE 100 names, Imperial Brands (IMB) likely stands out with its headline dividend yield north of 6%. But after a 1.12% dip in the latest session to 2,658p, you might wonder whether the reward justifies the risk.
Current Price: 2,658.00p ·
Daily Change: -30.00p (-1.12%) ·
Dividend Frequency: Biannual
Quick snapshot
- 2,658.00p (Hargreaves Lansdown – live price feed)
- Change: -30.00p (-1.12%) from previous close of 2,688.00p (Hargreaves Lansdown – live price feed)
- Dividend per share: £0.401 (Hargreaves Lansdown)
- Yield: 6.05% (Hargreaves Lansdown)
- OUTPERFORM (MarketScreener – consensus rating)
- Median target: 3,350p — a potential 24.63% upside (Investors Chronicle – analyst forecasts)
- Low: 2,400p (Imperial Brands – share price data)
- High: 2,900p (Imperial Brands – share price data)
The table below summarizes the key snapshot facts for Imperial Brands.
| Metric | Value |
|---|---|
| Price (GBX) | 2,658.00 |
| Change | -30.00 (-1.12%) |
| Dividend Frequency | Semi-annual |
| FTSE 100 Component | Yes |
| Market Cap | £22.5B (approx.) |
What are analysts’ predictions for Imperial Brands?
What is the consensus rating?
- MarketScreener reports a mean consensus of OUTPERFORM for Imperial Brands (MarketScreener).
What are the 12-month price targets?
- Investors Chronicle aggregates 9 analysts with a median target of 3,350.00p, a high of 5,200.00p, and a low of 2,700.00p (Investors Chronicle).
- Investing.com shows an average target of 3,313.64p from 11 analysts, with a high of 3,650p and a low of 2,700p (Investing.com – Imperial Brands stock forecast).
How do predictions compare to the current price?
The median target of 3,350p implies a 24.63% upside from the last price of 2,688p (Investors Chronicle). That gap reflects analysts’ belief that the market has undervalued the stock relative to earnings and dividend potential.
The implication: The wide dispersion in targets underscores the sector’s regulatory unpredictability.
Is IMB overvalued or undervalued?
What is the intrinsic value per share?
- Simply Wall St’s fair value estimate for Imperial Brands is approximately £41.80 per share, up from £39.00 (Simply Wall St – Imperial Brands valuation).
How does the P/E ratio compare to peers?
- The current P/E ratio is 8.53, as reported by Hargreaves Lansdown (Hargreaves Lansdown).
What valuation metrics are used?
A P/E of 8.53 places IMB below the typical FTSE 100 average, suggesting a value play. However, the tobacco sector’s regulatory headwinds and declining smoking rates often compress multiples. The Simply Wall St DCF estimate of £41.80 would imply a 57% upside from today’s price if the assumptions hold.
Bottom line: Both P/E and DCF models suggest the stock is undervalued on paper, but the discount reflects real regulatory risk that investors must weigh.
What this means: The valuation gap is a bet on the market mispricing regulatory risk.
How often do Imperial Brands pay dividends?
When are the ex-dividend dates?
- Hargreaves Lansdown lists an ex-dividend date of 19 February 2026 and a payment date of 31 March 2026 (Hargreaves Lansdown).
What is the dividend per share?
- The latest dividend per share is £0.401 (Hargreaves Lansdown).
What is the dividend yield?
The trailing dividend yield stands at 6.05% (Hargreaves Lansdown). Combined with semi-annual payments, this makes IMB one of the higher-yielding FTSE 100 stocks.
A 6% yield is attractive, but the stock’s price decline (-1.12% on the day) reminds us that capital appreciation is uncertain. You’re essentially trading potential price growth for current income.
The catch: The yield compensates for near-term capital volatility.
Is Imperial Brands a good buy?
What are the pros of buying IMB?
- Strong analyst consensus: OUTPERFORM with a median target 24.63% above current levels.
- Attractive dividend yield of 6.05%, paid semi-annually.
- FTSE 100 listing provides liquidity and index inclusion.
What are the cons or risks?
- The share price has recently fallen — down over 1% in a single session.
- P/E ratio of 8.53, while low, may reflect structural decline in tobacco consumption.
- Future dividend growth is not guaranteed; the sector faces regulatory pressure.
How does it compare to other tobacco stocks?
Imperial Brands is often compared to British American Tobacco (BATS). While BATS offers a similar yield, IMB’s smaller market cap and lower valuation multiples can appeal to value‑oriented investors. However, without BATS’ diversification into next‑gen products, IMB is more exposed to traditional cigarette declines.
Upsides
- Analyst consensus OUTPERFORM
- Dividend yield 6.05%
- P/E below market average
Downsides
- Recent price decline
- Regulatory uncertainty
- Limited next‑gen product portfolio
The trade-off: Income today versus growth tomorrow.
What are the top 5 stocks to buy right now?
Where does Imperial Brands rank among top picks?
- Imperial Brands is not among the most‑mentioned top 5 stocks in general financial media, but it frequently appears in income‑focused portfolios due to its yield (MarketScreener).
What criteria define a top stock?
Most analyst top‑pick lists favour companies with consistent earnings growth, low debt, and a clear competitive moat. Imperial Brands scores well on yield and valuation, but its declining industry may keep it off growth‑oriented lists.
How do other dividend stocks compare?
For context, FTSE 100 peers like BATS and Unilever offer yields in the 3‑5% range. IMB’s 6.05% yield is competitive, but investors must accept higher sector‑specific risk.
The following table compares Imperial Brands’ current metrics to analyst target ranges.
| Metric | Current | Low Target | Median Target | High Target |
|---|---|---|---|---|
| Price (p) | 2,658 | 2,700 | 3,350 | 5,200 |
| Dividend Yield | 6.05% | ~5.2% (at high target) | ~4.8% (at median) | ~3.8% (at high target) |
| P/E Ratio | 8.53 | — | — | — |
| Consensus Rating | OUTPERFORM | Hold | OUTPERFORM | Buy |
The data shows that even at the low end of analyst expectations, the stock offers a potential upside. The median case implies a 24% gain, while the high case nearly doubles the current price.
Timeline: Imperial Brands share price events
- 2025: Current price at 2,658p. Ex-dividend date 19 Feb 2026, payment 31 Mar 2026 (Hargreaves Lansdown).
The immediate catalyst is the next dividend payment in March 2026. Longer‑term, look for developments in Imperial Brands’ next‑gen product strategy and any UK regulatory changes on nicotine products.
Confirmed facts & what’s unclear
Confirmed facts
- Current share price: 2,658.00p (Hargreaves Lansdown)
- Dividend per share: £0.401
- Ex‑dividend date: 19 Feb 2026
- FTSE 100 component
- Analyst median target: 3,350p
- Consensus rating: OUTPERFORM
What’s unclear
- Exact future share price movement
- Dividend growth rate beyond 2026
- Impact of regulatory changes on earnings
- Whether the intrinsic value of £41.80 will be realised
- Actual 12-month price target accuracy
- Market reaction to next dividend announcement
Quotes & analyst perspectives
“The median analyst target of 3,350p represents a 24.63% increase from the last price of 2,688p.”
“MarketScreener reports a mean consensus of OUTPERFORM for Imperial Brands.”
“Hargreaves Lansdown shows a dividend yield of 6.05% and a P/E ratio of 8.53.”
Hargreaves Lansdown – Imperial Brands Group Ordinary 10p share price
For income investors eyeing FTSE 100, the choice is clear: IMB offers a strong dividend backed by analyst optimism, but the recent price dip signals near-term volatility. The decision rests on whether you prioritise yield today over price stability tomorrow.
For a deeper dive into the latest forecasts and dividend data, see this Imperial Brands share price analysis from Newsdock.
Frequently asked questions
What is the Imperial Brands dividend yield?
The trailing dividend yield is 6.05% as per Hargreaves Lansdown.
When is the next Imperial Brands dividend payment date?
The next payment is scheduled for 31 March 2026, with an ex‑dividend date of 19 February 2026.
What is the 52-week high and low for IMB?
The 52-week low is approximately 2,400p and the high is around 2,900p, based on market data.
Is Imperial Brands a FTSE 100 stock?
Yes, Imperial Brands PLC is listed on the London Stock Exchange and is a FTSE 100 constituent (Imperial Brands – share price data).
What is the P/E ratio of Imperial Brands?
The current P/E ratio is 8.53.
How does Imperial Brands compare to British American Tobacco (BATS)?
Both offer similar yields, but IMB trades at a lower valuation multiple and has a smaller market cap. BATS has advanced further in next‑generation products.
What is the intrinsic value of IMB per share?
Simply Wall St estimates the fair value at approximately £41.80 per share.
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Oliver Jack Carter Cooper is a staff writer for EveningLedger.uk, covering UK news, politics, business and culture. He works under Editor-in-Chief Edward Langley and Managing Editor Charlotte Reeves, following the newsroom standards for sourcing, verification and fact-checking set out in our editorial policies.