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. In a statement, Imperial said that while it was "committed to supporting and growing our business through strong product innovation and new distribution channels", it would now be focusing on increasing margins by investing more aggressively 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.