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
£5,000 invested in these FTSE 100 shares could bring in a second income of…
Investing Articles
Here’s a 5-stock ISA portfolio to consider for passive income and growth!
Investing Articles
Forecast: in 1 year, the Aviva share price could turn £1,000 into…
Investing Articles
My Legal & General shares are being battered by rival Aviva! Time to consider switching?
Investing Articles
Investing £5k of savings can generate a passive income of…
Investing Articles
With an index-busting 5.9% dividend yield, is Aviva an income share to consider?
Investing Articles
£10,000 invested in Aviva shares 5 years ago would have generated total dividend income of…
Investing Articles
At an 18-year high, can the Aviva share price keep rising?
Investing Articles
Can ChatGPT really build the perfect passive income portfolio? I put it to the test
Investing Articles
A 7.2% forecast yield and 35% under ‘fair value’, should I buy more Aviva shares after the strong trading update?
Investing Articles
£9,000 in savings? Here’s how that could earn £285 a month in passive income