UK-based Phoenix Group Holdings PLC (GB:PHNX) offers a dividend yield of over 10.29%, tempting income investors to maximize their portfolio returns. Additionally, Phoenix Group’s dividend yield far exceeds the industry average of 1.336%. While the company offers an attractive dividend yield, the potential for share price appreciation is limited in the current market environment. Analysts remain cautious on PHNX stock with a Hold rating.
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Phoenix Group is a financial services provider in the UK, offering insurance, savings, and retirement solutions. The company is a part of the FTSE 100 index and stands out for being one of the top dividend payers within the index.
Let’s take a look at more details.
TipRanks Simplifies Dividend Monitoring
TipRanks provides multiple tools to streamline tracking dividend stocks according to user preferences. For instance, the TipRanks Best Dividend Stocks – UK highlights top UK dividend payers and offers comparison options to aid decision-making. Additionally, TipRanks offers a Dividend Comparison Tool that allows you to calculate your returns and compare them with other stocks, helping you choose the best investment option.
What Is the Dividend for Phoenix Group in 2024?
Phoenix Group Holdings pays dividends twice a year, usually in May and September or October. For FY24, the company paid a half-year dividend of 26.65p per share in October, marking a year-over-year increase of 2.5%.
In FY23, Phoenix paid a total dividend of 52.65p per share, which was 3.6% higher compared to the previous fiscal year. The consistent growth highlights its robust track record of dividend payments.
Phoenix’s Strong Cash Flow Supports Steady Dividends
One of the key advantages for Phoenix is its strong cash generation, driven by regular premium payments from policyholders. In FY23, the company reported £1.1 billion in operating cash generation, with a target of reaching £1.4 billion by 2026. Meanwhile, the total cash generation grew by 35% year-over-year to £2.02 billion, surpassing its target of £1.8 billion.
The company’s cash generation comfortably covers its recurring uses while maintaining steady dividend payouts.
Is Phoenix Group Holdings a Good Buy?
According to TipRanks consensus, PHNX stock has received a Hold rating based on two Buy, two Hold, and three Sell recommendations. The Phoenix share price target of 546.51p is 9.25% above the current trading level.
