Among the popular UK dividend stocks, Phoenix Group Holdings PLC (GB:PHNX) offers a yield of 10.28%, presenting an opportunity for investors to maximise their portfolio returns. PHNX’s dividend yield also surpasses the industry average of 2.11% by a huge margin. Phoenix Group is a financial services company offering insurance, savings, and retirement solutions. The company is a part of the FTSE 100 index and ranks among the top dividend payers within the index.
TipRanks provides several tools tailored to assist users in finding dividend stocks that align with their preferences. Here, we utilized the TipRanks’ Top Dividend Shares tool for the UK market, which presents a detailed list of high dividend-yielding companies.
Phoenix Group’s Dividend History
Phoenix Group Holdings distributes dividends twice annually, typically in May and September or October. The company paid a half-year dividend of 26p per share for FY23 in October 2023, marking a 4.8% year-over-year increase.
Phoenix Group has a remarkable track record of consistently paying and increasing its dividends. Despite recent years seeing modest growth in dividend payments, averaging around 2%-3%, this remains a positive indicator. Another highlight for Phoenix is its robust cash flows due to regular premium payments from policyholders, ensuring a steady stream of cash for dividend payouts.
Last month, the company released its full-year trading update, achieving strong organic new business growth in 2023. The new business net fund flows grew by 80% on a year-over-year basis to £7 billion in 2023. The group surpassed expectations by generating approximately £1.5 billion in new business long-term cash generation in 2023, reaching its 2025 target two years in advance.
The company will release its full-year results for FY23 on March 22, 2024.
Are Phoenix Group Shares a Good Buy?
According to TipRanks, PHNX stock has received a Moderate Buy consensus rating based on three Buys, one Hold, and one Sell recommendation. The Phoenix share price target is 559p, reflecting an upside potential of 15.7% from the current trading level.
