Right now, eight blue-chip dividend shares are yielding passive incomes of 6% or more, and all have their virtues. But one really jumps out at me.

It’s tobacco giant Imperial Brands (LSE: IMB). This is always there or there thereabouts when looking at top FTSE 100 income stocks, but suddenly it looks even more tempting. So what’s caught my attention?

First, it’s crept up the dividend league table. Imperial Brands now yields around 6.6%, putting it among the FTSE 100’s highest-yielding shares. The share price has fallen, pushing up the yield through sheer mathematics. Imperial Brands is more than 20% lower than it was a year ago and more than 30% below its 52-week high.

Tobacco stocks are mostly seen as defensive investments, prized for income rather than growth. Yet Imperial Brands’ shares have defied that stereotype for years. They’re still up a mighty 63% over the last five years, before dividends. After such a strong run, there was always a chance they’d retreat. And now they have.

This share’s worth considering

First-half results (12 May) weren’t disastrous, but they weren’t great either. Reported operating profit fell 36.5%, largely due to costs including an historic US legal settlement in the US. More importantly, the company admitted tobacco volumes were declining, although tobacco net revenue still rose 1.5% as it continues to hike prices.

There was better news elsewhere. Next-generation product revenue jumped 7.5%, with strong growth in Europe and AAACE. Adjusted earnings per share rose 5.3% and free cash flow was a hefty £2.6bn over 12 months.

There may be another factor. Rising bond yields make reliable income from government debt more attractive, which can take some shine off high-yield shares. But I think Imperial’s recent weakness is more about concerns over market share and its previous stellar performance.

A tempting opportunity

The shares now trade on a price-to-earnings ratio of around 7.9. That’s cheap by almost any conventional measure. Especially for a stock with a good track record of increasing dividends.

Tobacco’s a declining market and Imperial Brands has to keep raising prices and finding new ways to sell to a tightly regulated customer base. Vaping remains hugely controversial. Competition’s intensifying too, including from the black market.

Sales of heated tobacco, modern oral products and other alternatives are growing, giving Imperial new markets to capture as traditional cigarette volumes fall. The company’s huge existing customer base helps, giving it millions of established consumers and powerful distribution networks.

Investors who are heavily exposed to expensive US technology stocks might fancy a defensive, cash-generative FTSE 100 business to balance the portfolio.

Of course, some investors won’t touch Big Tobacco on moral grounds. But for those who are willing to invest in the sector, I think today’s a good time to consider it.

I’m not saying Imperial Brands shares will go gangbusters again. But that high yield and low valuation make this cash-rich company look pretty compelling for a long-term dividend seekers. And there are other income opportunities that I’ve got my eye on…

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Harvey Jones does not hold any positions in the companies mentioned.