UK-based insurance company Phoenix Group Holdings (GB:PHNX) boasts a dividend yield of close to 10%, making it an attractive option for income investors. Phoenix Group’s dividend yield of 9.79% significantly outpaces the industry average of 2.11%. The company is a part of the FTSE 100 index and stands out as one of the top dividend payers within the index.
Phoenix Group is a financial services company that provides insurance, savings, and retirement solutions.
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How Often Does Phoenix Group Pay Dividends?
Phoenix Group Holdings distributes dividends twice a year, first in May and second in either September or October. The company paid its final dividend of 26.65p per share for FY23 in May 2024, representing a 2.5% increase over the dividend for the same period the previous year.
Before this, the company paid a half-year dividend of 26p per share in October 2023. The total dividend for 2023 was 52.65p per share, up from 50.8p for 2022.
Phoenix Strengthens Dividend with Strong Cash Flow
Along with its annual results for 2023, Phoenix Group launched a “progressive and sustainable ordinary dividend policy.” The new dividend policy aligns with the company’s strategy to achieve sustainable and increasing operating cash generation over the long term.
Phoenix reported £2.024 billion in total cash generation for 2023, which increased from £1.504 billion in 2022 and exceeded its £1.8 billion target. This company’s performance allowed it to meet its 2025 targets two years ahead of schedule.
Is Phoenix a Good Stock to Buy?
According to TipRanks consensus, PHNX stock has received a Moderate Buy rating based on three Buys and one Sell recommendation. The Phoenix share price target is 603.75p, reflecting an increase of 7.6% from the current trading level.
