Published on 10 Feb 2024 on Simply Wall St. via Yahoo Finance

Is It Smart To Buy Imperial Brands PLC (LON:IMB) Before It Goes Ex-Dividend?

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Imperial Brands PLC (LON:IMB) is about to go ex-dividend in just 4 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase Imperial Brands' shares on or after the 15th of February will not receive the dividend, which will be paid on the 28th of March.

The company's next dividend payment will be UK£0.5182 per share, on the back of last year when the company paid a total of UK£1.47 to shareholders. Based on the last year's worth of payments, Imperial Brands stock has a trailing yield of around 7.8% on the current share price of UK£18.825. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

Check out our latest analysis for Imperial Brands