I noticed that tobacco companies pay huge dividends. For example Imperial Brands is expected to pay 12.22%. I can see that a tobacco company would want to pay some dividend because it operates in an old sector, is likely old, and there might not be much else to conquer without leaving the sector the company is good at operating in.
But tobacco company's stocks are declining in value. As public companies are controlled by their shareholders, to me that behavior means that interest in their products is waning and they feel like they should scale back their operations and instead cash out, basically selling off the entire company.
But I don't see interest in cigarettes waning. Lots of people smoke and vaping is taking off. Given that some of those companies already produce vaping devices (including the example company Imperial Brands) and that tobacco companies seem to be really profitable (after all, they're giving away double digits dividends), I can't see why they don't invest more to grow their operations (for example to capture more of the emerging vaping market) instead of paying out high dividends. What's their strategy?