Among the famous UK stocks, Aviva PLC (GB:AV) offers a dividend yield of nearly 7%, significantly ahead of the sector average of 2.114%. In addition to high dividends, Aviva’s stock has received a Moderate Buy rating from analysts, with a modest upside potential of 6%.
Here, we have used the TipRanks Best UK Dividend Shares tool, which assists users in screening and selecting suitable dividend stocks in the UK market. Such tools streamline the often cumbersome process of stock selection within a particular market.
Aviva is a leading insurance company that serves a customer base of over 11 million. It offers a range of products, including insurance, wealth management, and retirement solutions.
Aviva’s Dividend History
Aviva recently paid a dividend of 22.3p per share in the last week as the final payment for 2023. This resulted in a total dividend of 33.4p per share for 2023, marking an increase of 8% over the previous year.
Along with 2023’s annual results, the company also upgraded its dividend guidance. Backed by its solid performance, Aviva projects growing the cash cost of the dividend by mid-single digits.
Moreover, the company initiated a new share buyback program of £300 million as part of its commitment to regular and sustainable capital returns. This brings the total amount of capital returns and dividends distributed to shareholders to over £9 billion over the past three years.
Q1 2024 Trading Update
Last week, Aviva also released its trading update for the first quarter of 2024, reflecting solid growth across its operations.
The company reported a 16% increase in general insurance premiums to £2.7 billion, driven by higher pricing and new business growth. Aviva’s asset management division also maintained strong performance, with wealth net flows increasing 15% year-on-year to £2.7 billion.
In terms of outlook, Aviva is targeting an operating profit of £2 billion by 2026. It also kept its plans for regular shareholder returns unchanged.
Is Aviva a Good Stock to Buy?
According to TipRanks, AV stock has received three Buys, three Holds, and one Sell rating from analysts. The Aviva share price forecast is 517.71p, with a high forecast of 584p and a low forecast of 420p.
