It’s a comforting validation for the ethical investor who has chosen not to own shares in tobacco groups: in a move driven by the desire to cut its debts, Imperial Brands yesterday slashed back its dividend at the half-year stage by a third. The maker of cigarettes and vaping products has chosen to rebase the payout with the aim of increasing the award gradually again each year.
Should they feel the need, investors who have shunned tobacco stocks on the grounds that the companies make products that kill people can argue that a large part of the investment case has evaporated overnight. But can they? Before yesterday’s cut, Imperial shares carried a dividend yield of above 11 per cent and even after the cut investors
