Should I buy Imperial Brands stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Imperial Brands for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Imperial Brands.

What is Imperial Brands?

Imperial Brands Stock Price

The price of Imperial Brands stock is falling this week. As of now, the share price stands at 2,813.00 pence, down 49.00 pence (-1.71%) over the last 24 hours, and showing a weekly change of -1.19%. Imperial Brands has a market capitalisation of £23.30 billion and trades at an average volume of 2.59 million shares (3-month average). The P/E Ratio is 9.38, the dividend yield is an attractive 6.56%, and the stock has a low beta of 0.26.

This combination of low volatility and high yield can offer stability and defensive value for UK investors.

Our full analysis of Imperial Brands stock

After examining Imperial Brands’s latest financial results and reviewing its robust share performance over the past three years, we have systematically applied our in-house algorithms to a broad set of data, from fundamental financial ratios and market data to technical signals and peer group comparisons. This integrated approach provides a holistic view of where the company stands today. So, why might Imperial Brands stock once again become a strategic entry point into the global consumer staples sector in 2025?

Recent performance and market context

Imperial Brands has demonstrated impressive momentum, with its stock price currently at 2,813.00 pence, representing a robust +39.67% appreciation over the past 12 months and an 8.78% gain over six months. Despite a modest 1.19% decline this week and a 1.71% intraday drop, such volatility should be viewed within the context of a healthy long-term uptrend and sector rotation into high-yield, defensive consumer names. The recent increase in market share across priority geographies and notable progress in Next Generation Products (NGP) have propelled confidence, while the recently launched share buyback programme (£1.25 billion) and an accelerated dividend schedule signal clear commitment to rewarding shareholders. These actions come at a time when macroeconomic headwinds are creating opportunities for sector leaders in defensives, as measured by resilient cash flows and steady demand for staple products.

The UK market currently favours companies that can demonstrate reliable earnings, strong cash conversion, and resilient business models. Imperial Brands, as the fourth-largest global tobacco player based in Bristol, stands out as a key defensive play within the FTSE 100, underpinned by a market capitalisation of £23.30 billion and high institutional support. The global sector’s rotation into quality and cash-yielding shares only amplifies Imperial Brands’s relevance.

Technical analysis

From a technical standpoint, Imperial Brands presents a nuanced and potentially attractive setup for investors seeking a blend of stability and upside. While the short-term RSI (14 days) sits at 32.57, signalling an oversold territory and potential near-term reversal, the MACD of -8.56 supports the narrative of a recent pullback. Moving averages highlight that the price is currently below key 20-day (2,850.53 pence), 50-day (2,851.19 pence), 100-day (2,896.26 pence), and 200-day (2,890.59 pence) levels, with technical support established at 2,810 pence and resistance around the 2,900 pence zone.

Importantly, such pullbacks into the oversold region often precede renewed upward momentum—especially given the broader context of the company’s powerful catalysts. For investors with an eye on the short to medium term, the confluence of technical support and an oversold RSI could mark an ideal point of entry, while the broadly bullish six-month trend underpins optimism for a continued move higher.

Fundamental analysis

Imperial Brands continues to deliver compelling fundamentals. For the latest half-year, the group reported revenues of £14.604 billion, with a free cash flow of £2.4 billion and a remarkable cash conversion rate of 99%. Adjusted operating profit reached £1.652 billion (up 1.8% at constant currency), and adjusted earnings per share grew 6% on a constant FX basis, exceeding both market and internal expectations. This profitability, alongside a sector-leading dividend yield of 6.56%, positions Imperial Brands as one of the more rewarding income stocks on the LSE.

The company’s forward P/E ratio of 9.38—well below sector and market averages—reflects an attractive valuation for a business of this quality and resilience. Despite the structural challenges in traditional tobacco, Imperial Brands has not only preserved market share but actually gained ground, rising by six basis points across its top five markets. The group’s unmatched pricing power enables it to offset volume declines with price increases, protecting both revenue and margin. Its legacy brands, such as JPS, Davidoff, Gauloises, and Winston, retain strong positions while the evolving NGP portfolio demonstrates double-digit revenue growth, particularly through modern oral and heated product lines.

The ongoing evolution into Next Generation Products, combined with a clear and consistent 2030 strategy, signals confidence in above-inflation EPS growth for years ahead. With a robust balance sheet and commitment to quarterly dividend growth, the stock seems to represent an excellent opportunity for long-term growth and capital appreciation.

Volume and liquidity

Liquidity remains very strong for Imperial Brands, averaging 2.59 million shares traded per day over the past three months. This sustained trading volume, combined with a broad free float of 776.95 million shares and FTSE 100 inclusion, underpins price stability and facilitates both institutional and retail investor activity. High liquidity is a key requirement for institutional buy-in and supports dynamic valuations—even during more volatile periods.

Such active trading signals confidence in the investable qualities of the company, while the ease of entry and exit works to the benefit of investors seeking flexible portfolio positioning.

Catalysts and positive outlook

• NGP Growth: Net revenue from modern oral and heated tobacco products surged by 15.4%, representing clear momentum in alternatives to traditional cigarettes and a future-proofed revenue stream.
• Shareholder return: The current £1.25 billion share buyback programme and a 78.5% increase in the interim dividend, now delivered quarterly, strongly support investor confidence.
• Strategic expansion: Ongoing penetration of major international markets and further investment in high-growth segments like modern oral products (notably the “Zone” brand in the US) set the stage for renewed top-line growth.
• Pricing power: The ability to systematically pass on higher prices in key markets is not only a sign of brand strength but also a crucial buffer in a structurally declining tobacco market.
• Free cash flow generation: Superior cash flow supports innovation, debt reduction, and recurring shareholder distributions, making Imperial Brands a standout for income-oriented portfolios.
• Leadership transition: The planned handover to CFO Lukas Paravicini as CEO in October 2025 is structured for continuity, providing strategic reassurance and positioning the company for its next growth phase.

From a macro perspective, global defensive stocks are currently outperforming in response to cyclical uncertainty, positioning Imperial Brands ahead of the curve. Regulatory frameworks continue to favour established, compliant sector leaders, and Imperial Brands has shown adaptability through innovation, ESG strategy, and digital transformation.

Investment strategies

• Short-term positioning: Current oversold technical levels near the 2,810 pence support create potential for a tactical rebound trade, especially as the RSI and moving averages signal a possible bullish reversal.
• Medium-term outlook: Anticipated upward catalyst effects, including new NGP launches, upcoming quarterly dividends, and consistent share buybacks, justify accumulating positions before further technical breakouts.
• Long-term perspective: The stock’s growth trajectory is reinforced by its transition to next-generation products, powerful brand equity, pricing power, and robust cash flows. The resilient business model, compelling dividend yield, and below-market valuation suggest a strong case for holding through upcoming economic cycles.

Investors seeking defensive growth, stable income, and exposure to the sector’s most innovative names will find Imperial Brands especially appealing. With moderate beta (0.26) and market sentiment slowly pivoting from neutral to optimistic, the environment is set for renewed interest.

Is it the right time to buy Imperial Brands?

Imperial Brands exhibits an enviable combination of strong technical support, attractive valuation, robust dividend yield, and dynamic catalysts at both the operational and market levels. Its adaptability, innovation in next-generation products, and shareholder-focused capital management make the stock truly distinctive among UK consumer staples.

With a forward P/E far below market peers, resilient cash generation, and growing strategic market share, the fundamentals justify renewed attention. Technical signals now suggest that the market may be offering one of the best entry points in recent memory, especially for investors seeking stable returns, capital appreciation, and long-term income from a leading FTSE 100 defensive.

For these reasons, Imperial Brands seems to represent an excellent opportunity as it enters a new bullish phase, supported by high yield, operational discipline, and a powerful suite of emerging growth drivers. Investors looking to capitalise on both market stability and innovation will be well served by watching this stock closely as the next catalysts unfold.

How to buy Imperial Brands stock

Buying Imperial Brands stock online is straightforward and secure when you use a regulated broker in the UK. You have two main options: spot buying, where you purchase the actual shares directly, and trading via Contracts for Difference (CFDs), which allows you to profit from price movements without owning the underlying asset. Both methods are accessible, with investor protection ensured by UK financial regulations. Further down the page, you’ll find a comparison of leading brokers to help you choose the best option.

Spot buying

Buying Imperial Brands shares for cash—also called spot buying—means you own the stock outright and benefit from dividends and potential long-term appreciation. Local brokers typically charge a fixed commission per order, such as £5–£10 per trade.

Gain scenario

If the Imperial Brands share price is £28.13 and you invest £1,000, you can buy around 35 shares, including a brokerage fee of about £5.

If the share price rises by 10%, your shares will now be worth £1,100.

Result: That’s a gross gain of £100, or +10% on your initial investment.

Trading via CFD

CFD trading on Imperial Brands shares allows you to speculate on price changes with leverage, so you can amplify both gains and losses. The main fees are the spread (the broker’s margin) and possible overnight financing charges if you keep your position open for more than one day.

Gain scenario

You open a CFD position on Imperial Brands shares, using £1,000 with 5x leverage.

This gives you £5,000 of market exposure.

If the stock rises by 8%, you multiply the return by your leverage: 8% × 5 = 40%.

Result: You make a £400 gain on your £1,000 position (before fees).

Final advice

Before investing, it’s essential to carefully compare brokers’ fees, trading conditions and available services. The most suitable option—cash shares or CFDs—depends on your individual objectives and risk appetite. For more details, see our broker comparison further down the page.

Our 7 tips for buying Imperial Brands stock

The latest news about Imperial Brands

Imperial Brands confirms a planned CEO transition to Lukas Paravicini in October 2025. The leadership handover, which has been clearly communicated to the market, ensures strategic continuity, with the incoming CEO already deeply embedded in the company as CFO. This move reassures investors and stakeholders in the UK that there will be no disruption to the group’s core long-term initiatives.

Imperial Brands’ interim dividend has been significantly increased, with payments now quarterly. Reflecting strong free cash flow, the group raised its interim dividend by 78.5% and shifted from biannual to quarterly payouts. This change benefits UK shareholders directly, delivering more frequent and stable income streams in line with the company’s ongoing commitment to shareholder returns.

Imperial Brands continues its £1.25 billion share buyback programme supporting share value. Ongoing share repurchases demonstrate robust cash generation and management’s confidence in long-term UK market prospects, offering an additional layer of support to the stock and enhancing earnings per share for domestic investors.

Next Generation Products (NGP) division posts double-digit sales growth, driven by UK-focused innovations. The company reported a 15.4% increase in net revenue for NGP, which includes modern oral products. Such growth underlines Imperial Brands’ successful strategic pivot towards regulated alternatives, aligning with UK tobacco reduction policies and evolving consumer preferences.

Stock remains a core FTSE 100 constituent, eligible for UK ISAs and tax-efficient investing. Imperial Brands’ presence in the FTSE 100 and automatic eligibility for UK Individual Savings Accounts (ISAs) means investors can benefit from tax-free growth and dividends. This provides a significant practical advantage for UK residents seeking reliable, income-generating equity exposure.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.