In major news on UK stocks, M&G PLC’s (GB:MNG) shares gained over 1% after the company’s profit in its 2023 annual report surpassed analysts’ forecasts. The company’s adjusted operating profit reached £797 million, marking a 28% increase compared to the previous year and outperforming forecasts.
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MNG stock has gained around 26.13% in the last 12 months, reflecting a resilient performance amid challenging market conditions.
M&G is an investment management company that provides a wide range of options for long-term savings, investments, and asset management needs.
Positive Momentum in M&G’s 2023 Results
In 2023, M&G demonstrated positive business momentum across major financial indicators, highlighting its strong and diversified business model. The company’s net client inflows (excluding Heritage) grew to £1.1 billion, compared to £0.2 billion in 2022. Additionally, the Shareholder Solvency II coverage ratio improved to 203% from 199% in 2022.
The company’s operating capital generation of £996 million also saw a 20% year-over-year increase. Over the last two years, the company generated £1.8 billion of operating capital, positioning it well to achieve its three-year cumulative target of £2.5 billion by the end of 2024.
MNG Stock: A Dividend Gem
M&G’s strong operational performance and dividend continue to attract investors. M&G ranks among the top companies with high dividend yields on the FTSE 100 index. The company currently has a dividend yield of 8.59%. Along with the final results, the company announced its second interim dividend of 13.2p per share, payable on May 9, 2024.
The total dividend for 2023 is 19.7p per share, consistent with the company’s policy of maintaining or increasing dividends. This is slightly higher than the previous year’s dividend of 19.6p.
Is M&G a Good Investment?
According to TipRanks, MNG stock has received a Moderate Buy consensus rating based on three Buys, three Holds, and one Sell recommendation from analysts. The M&G share price prediction is 239.52p, which indicates the stock is fully valued.
It is important to note here that these ratings and price targets were assigned before the results and could be revised.
