This article shows you how a tobacco stock everyone ignored delivered a 79.3% return in under two years, and how you could have captured it. It shows how a simple, rules-based strategy called Shareholder Yield flagged Imperial Brands while others ran scared. You will see why yield, quality, and timing matter more than headlines or forecasts.
If you want a retirement-friendly portfolio with strong cash flow and downside protection, this system is perfect for you.
Estimated Reading Time: 6 minutes
Most investors wrote off tobacco stocks. Our Shareholder Yield system did not.
When Imperial Brands PLC appeared in our Shareholder Yield Letter on 8 August 2023, it raised eyebrows. Litigation fears, regulatory pressure, and ESG trends painted tobacco companies as untouchable.
But the numbers told a different story.
The Contrarian Setup
At the time of our recommendation, Imperial Brands was trading at just £18.20 per share. Sentiment was grim. The consensus was simple: tobacco’s glory days were over.
But our investment system does not follow headlines. It follows data.
Here is what the Shareholder Yield investment model saw:
-
Dividend yield: 7.9%
-
Buyback yield: 2.3%
-
Total shareholder yield: 10.3%
-
Operating profit up: 27.7% year-on-year
-
Net profit up: 12.7%
-
EPS up: 11.2%
Even more important, Imperial was executing a £1 billion buyback program, had a progressive dividend policy, and was delivering consistent earnings while reducing debt.
The System at Work
The Shareholder Yield strategy only recommends new ideas when the MSCI World Index is above its 200-day moving average, a simple rule that avoids buying in a falling market.
Every stock is run through a rigorous 23-point checklist, and recommendations are based purely on objective criteria. No guessing. No emotion. Just results.
Our system flagged Imperial because:
-
It is a large-cap market leader, a key requirement.
-
It generated consistent free cash flow.
-
It passed all financial quality filters, including conservative debt and stable profit margins.
-
It returned capital via dividends and buybacks, key drivers of long-term outperformance.
The Result
From 8 August 2023 to 6 June 2025, Imperial delivered:
-
+3.3% in 2023 (partial year)
-
+49.7% in 2024
-
+16.3% YTD to June 2025
-
+17.5% in dividend returns, included above
That is a total return of +79.3% in less than two years.
While others avoided tobacco stocks out of fear, our members collected safe, compounding income, paired with a near 50% price gain in year two.
What You Can Learn
-
Do not follow narratives. Follow the numbers.
-
Yield + Quality + Timing beats fear and forecasts.
-
A disciplined, systematic strategy outperforms emotional investing—especially in overlooked sectors.
Your Next Step
If you are building a retirement-friendly portfolio with stable cash flow and limited downside, the Shareholder Yield Letter may be your best ally.
You will get:
-
Monthly ideas with high shareholder yield
-
Built-in market timing and stop-loss protection
-
Large, liquid stocks with proven capital return
👉 Join the Shareholder Yield Letter and take control of your future—with a strategy that delivers.
Click here to sigh up for the Shareholder Yield Letter NOW! - Click here
FREQUENTLY ASKED QUESTIONS
1. Why did the Shareholder Yield system choose a tobacco stock like Imperial Brands, when everyone else was avoiding it?
Because the system follows facts, not fear. Imperial had a 10.3% shareholder yield, rising profits, and a £1 billion buyback in place. While the media focused on lawsuits and ESG risks, the model focused on cash flow and capital return—where the real investor gains come from.
2. How can I tell if a stock like Imperial is actually a good opportunity, not a value trap?
Use data, not headlines. Imperial passed 23 financial tests: stable earnings, growing profits, low debt, and consistent buybacks. If a company keeps paying you while improving its finances, that is not a trap, it is an opportunity in disguise.
3. I want high yield, but I am scared of big losses. How does this system manage downside?
It protects your capital two ways:
-
Timing: It only buys when the overall market is rising.
-
Stop-loss: If a stock drops 20% from its peak, it is automatically sold.
This helps avoid big losses and keeps you compounding.
4. What exactly is shareholder yield, and why does it matter so much?
Shareholder yield = dividend yield + buyback yield. It measures how much cash the company gives back to you. Studies show stocks with high shareholder yield consistently beat the market, especially over long time frames.
5. What if I do not want to own tobacco stocks for personal reasons? Can I still use this system?
Absolutely. The system applies to any industry. You can filter out sectors you dislike and still find stocks with high yield, strong quality, and market support. The strategy is flexible it is the rules that stay consistent.
6. I am retired and want income I can count on. Is this strategy right for me?
Yes. It focuses on large, stable companies that pay high dividends and buy back shares ideal for income planning. These companies are also liquid and proven, which reduces the risk of nasty surprises.
7. I have made emotional mistakes before. Can I really trust a rules-based model to do better?
Yes—and you are not alone. Most investors underperform because they react emotionally. A data-based checklist removes guesswork. It gives you clarity, discipline, and confidence to stay invested through noise.
Click here to sigh up for the Shareholder Yield Letter NOW! - Click here
