Bengaluru tobacco company Imperial Brands will lower its 10% dividend growth target from next year as it moves towards the e-cigarette market. The firm also intends to buy back up to £200m ($251m) of shares as it looks to challenge Juul's supremacy in the e-cigarette sector, moving away from traditional tobacco where sales are declining in developed markets. With Imperial's stock having dropped 17% this year, its rate of dividend growth was considered unsustainable. However, the organisation stated that payouts would still increase annually, but use a progressive dividend policy based on underlying business performance.
UK tobacco company Imperial Brands will lower its 10% dividend growth target from next year as it moves towards the e-cigarette market. The firm also intends to buy back up to £200m ($251m) of shares as it looks to challenge Juul's supremacy in the e-cigarette sector, moving away from traditional tobacco where sales are declining in developed markets. With Imperial's stock having dropped 17% this year, its rate of dividend growth was considered unsustainable. However, the organisation stated that payouts would still increase annually, but use a progressive dividend policy based on underlying business performance.