M&G PLC (GB:MNG) is set to go ex-dividend this week, offering a final opportunity for income investors to buy the stock and qualify for the upcoming dividend payout. The company will pay its interim dividend of 6.6p per share for 2024 on October 18, 2024. The ex-dividend date for the stock is Thursday, September 12. Overall, MNG stock carries a dividend yield of 8.9%, way above the industry average of 2.11%.
M&G is a savings and investment firm providing solutions for long-term savings, investments, and asset management. It is recognized as one of the top dividend-paying companies in the UK market.
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Let’s take a look at more details on M&G’s dividends.
How Often Does M&G Pay Dividends?
M&G pays dividends twice in a year as interim and second interim payments. In 2023, the first interim dividend of 6.5p was distributed on November 3, 2023. This was followed by the second interim payment of 13.2p per share paid in May 2024.
Overall, the total dividend of 19.7p for 2023 was in line with the company’s policy and represented a small increase from the previous year’s dividend of 19.6p per share.
M&G Faced Challenges in the First Half of 2024
Last week, M&G revealed its half-yearly results for 2024, highlighting tougher trading conditions. In H1 2024, M&G experienced net client outflows of £1.5 billion, a stark contrast to the net inflows of £700 million recorded in the same period last year. The company reported IFRS losses after tax of £56 million, compared to a £75 million profit in H1 2023.
On the plus side, total capital generation was £813 million, representing a ten-fold increase over the £73 million generated a year ago.
Considering its resilient performance, M&G raised its capital generation target to £2.7 billion from £2.5 billion by the end of 2024. Additionally, the company increased its cost savings target to £220 million by the end of 2025, up from the previous estimate of £200 million.
Are M&G Shares a Good Buy?
According to TipRanks, MNG stock has received a Moderate Buy rating based on five Buys, two Holds, and one Sell recommendation from analysts. The M&G share price prediction is 242.85p, which is 16.5% above the current trading levels.
