Among the famous UK stocks, M&G PLC (GB:MNG) provides an attractive opportunity to income investors with a dividend yield of above 8%. The yield is also significantly higher than the sector average of 2.11%. M&G is an investment management company that provides a wide range of services, catering to the long-term savings, investments, and asset management needs of clients.
Interestingly, M&G is among the top dividend-paying companies in the UK market. The TipRanks Best UK Dividend Shares tool offers a comprehensive list of such companies that are ahead in their dividend game. The tool also provides parameters like analyst consensus, price target, etc. for users to evaluate and choose the right stock.
Let’s take a look at the details.
MNG’s Dividends for 2023
Last month, MNG announced its second interim dividend of 13.2p per share, which will be paid on May 9, 2024. Before this, the company paid its first interim dividend of 6.5p per share in November 2023.
The total dividend for 2023 amounts to 19.7p per share and aligns with the company’s policy of maintaining or increasing dividends. This figure is slightly higher than the previous year’s dividend of 19.6p.
Dividend Growth Backed by Strong Numbers
In its 2023 annual results, M&G showcased robust business momentum across key financial metrics, underscoring the resilience of its diversified business model. The company’s adjusted operating profit surged to £797 million, representing a remarkable 28% rise from the previous year.
The company’s operating capital generation amounted to £996 million, marking a 20% year-on-year upswing. Over the past two years, M&G has generated £1.8 billion in operating capital, positioning it strongly to meet its three-year cumulative target of £2.5 billion by the end of 2024.
Additionally, the Shareholder Solvency II coverage ratio strengthened to 203% in 2023 compared to 199% in the previous year.
Are MNG Shares a Good Buy?
According to TipRanks, MNG stock has received a Moderate Buy rating based on three Buys, two Holds, and one Sell recommendation from analysts. The M&G share price prediction is 243.12p, which is 16.5% above the current trading levels.
