LSE:AV. (Aviva plc)
About AV.
Aviva is the largest multi-line insurance company in the United Kingdom. It was founded in 1990 following the merger of Commercial General Union and Norwich Union.
The business provides a suite of financial services covering savings, retirement, and, of course, insurance. There are four divisions within the company targeted toward both businesses and consumers.
- UK & Ireland Life – provides life, long-term health, and accident insurance as well as savings, pensions, and annuity services.
- UK & Ireland General Insurance – provides various forms of insurance to individuals as well as businesses.
- Canada General Insurance – provides a portfolio of personal and commercial insurance products.
- Aviva Investors – provides investment management services to financial institutions such as pension funds.
Overall, only half the revenue stream originates from the UK, with the rest stemming from international markets like Canada and Europe.
Frequently Asked Questions
-
Investing in large insurance businesses is often regarded as safe. The steady stream of capital from policyholders provides ample cash flow to cover liabilities while also fuelling an investment portfolio to deliver growth.
That’s arguably why the Aviva share price has a history of relative stability, making it ideal for income investors. However, the inability to correctly judge the quality of policyholders before issuing insurance can quickly start building up bad clients, potentially compromising the precious cash flow.
Investors need to consider these risks before making an investment decision.
-
Yes. Aviva shares pay a cash dividend at an average 52% payout ratio. Dividends were temporarily postponed in early 2020 but were resumed before the end of the year. The stock has two years of consecutive dividend growth.
-
Aviva shares pay out a dividend twice a year, in April and August.
-
Aviva shares are listed on the London Stock Exchange. They can be bought from any investment account that provides access to this exchange platform.
Aviva plc (LSE: AV.) Latest News
Investing Articles
Dividend yields up to 11.1%: 3 FTSE 100 passive income shares to consider
Investing Articles
Here’s how I’d build £1,000 a month in passive income starting from scratch
Investing Articles
Aviva shares yield 7% and look like great value. I’d buy them today
Investing Articles
When could the Aviva share price break £5?
Investing Articles
I’m keen to buy great value BP shares in June but Aviva’s 6.96% yield looks pretty tempting too
Investing Articles
6.2% dividend yield! 2 FTSE 100 stocks to consider for a cheap passive income
Investing Articles
Already 7%, could the Aviva dividend yield go higher?
Investing Articles
With 7%+ yields, here are two FTSE 100 dividend shares to consider buying now
Investing Articles
£3,000 in savings? I’d start investing with a Stocks and Shares ISA
Investing Articles
Should I increase my stake in Legal & General or buy great value Aviva shares instead?
