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
Can the Aviva share price smash it again next year? The experts have spoken
Investing Articles
What’s going on with the Direct Line share price?
Investing Articles
Here are the dividend forecasts for 2 passive income stocks to consider this December
Investing Articles
Growth vs value investing: time for value to shine?
Investing Articles
With their 7.2% dividend yield, are Aviva shares a bargain?
Investing Articles
Can the Aviva share price get above £5 and stay there?
Investing Articles
How I plan to build an £86k yearly second income in the stock market
Investing Articles
To build a passive income flow, I’d follow this Warren Buffett approach
Investing Articles
Should I buy Aviva for its 7.8% yield now the share price is at 483p?
Investing Articles
Want a £1,320 passive income in 2025? These 2 UK shares could deliver it!
Investing Articles
Here’s how I’d target £10k passive income a year by investing just £100 a week
