Building a meaningful income stream from the FTSE 100 doesn’t require a complicated strategy. Sometimes, all it takes is finding the right dividend stocks and buying enough of them.

With that in mind, Imperial Brands (LSE:IMB) currently stands out as one such opportunity that might be worth considering. The tobacco stock pays an annual dividend of 160.32p per share. That means 7,485 shares generate £11,999.95 in annual passive income, essentially the equivalent of £1,000 a month.

Of course, at its current share price of 2,737p, buying close to 7,500 shares would set investors back by a fairly massive £204,864, well beyond what the average investor can reach in a single transaction.

But there’s no rule that says an investor has to buy all these shares at once. By drip feeding money over time, investors can start steadily accumulating shares and accelerate the process by reinvesting any dividends paid along the way.

But that still leaves one important question: is Imperial Brands even a good investment?

Is there a strong bull case?

Despite the shares slipping on a recent trading update, Imperial Brands remains in a remarkably resilient financial position.

The group confirmed it’s on track to deliver at least high-single-digit underlying earnings growth and more than £2.2bn in free cash flow for its 2026 fiscal year (ending in September). While expected cash generation is down from around £2.7bn in 2025, it’s still more than enough to cover the near-£1.55bn in dividends being paid out to shareholders.

In other words, the stock’s current 5.9% yield looks pretty robust. Throw in the expansive share buyback schemes, and the stock now offers one of the most attractive cash yields in the entire FTSE 100.

Moreover, when digging a bit deeper, the group’s next-generation products (NGPs), which cover vaping, heated tobacco, and oral nicotine, are growing at welcome double-digit rates in key markets including Europe, Asia, Africa, and Australasia.

That’s critical given the ongoing regulatory clampdown against traditional tobacco products. And by 2030, management expects NGPs to represent a meaningful slice of the revenue stream.

So is this a no-brainer?

Where is the risk?

While the company’s trying to transition itself towards NGPs, the reality is that Imperial Brands still makes the bulk of its money from tobacco. And as previously mentioned, regulators around the world are increasingly making life difficult for this business and its rivals.

As regulations tighten and public health awareness grows, cigarette volumes are declining structurally across developed markets. In other words, the clock’s ticking for Imperial Brands to make its successful transition, translating into some significant execution risk.

So where does that leave investors today?

The bottom line

When exploring tobacco stocks, it’s impossible to ignore the ethical dilemma of investing in a business that sells products that have proven long-term negative health effects.

However, for investors who are nonetheless comfortable investing in this sector, the company appears to be offering one of the most reliable and generous income streams in the UK stock market today.

Whether that can continue over the next decade is where the uncertainty lies. But so far, management seems to be taking the right steps. So for patient investors looking for a chunky passive income opportunity from the FTSE 100, Imperial Brands could be worth a closer look.