Aviva shares have shown remarkable growth over the past six years, demonstrating a significant turnaround from their low points during the COVID-19 pandemic. Investors who capitalized on the price drop in March 2020 have seen their investments thrive.
Aviva Shares Soar: From £228 to £626
In March 2020, Aviva (LSE: AV.) shares plummeted to £228. Since then, the share price has surged to £626, more than tripling in value. This impressive rebound has defied earlier perceptions of the company as a “dinosaur” in the FTSE 100 stock market.
Dividend Growth
The company’s dividends have also risen significantly during this period. Key highlights include:
- Last year’s dividend payment was £0.39 per share.
- This represents a yield of approximately 6% to 7% for investors from a year ago.
- For those who bought shares at the low of £228, the effective yield soared to 17%.
Strategic Management and Performance
The steady increase in dividends has been supported by strong operational management. Under CEO Amanda Blanc, Aviva has streamlined its business focus to emphasize its UK and Ireland operations. This strategic shift is paying off, as the company targets an 11% growth in earnings per share by 2028.
Future Outlook for Investors
Despite the past six years being exceptionally positive, predicting a similar outcome for the next six years may be optimistic. Aviva’s stock is currently valued with a price-to-earnings ratio of 24, indicating potential volatility if market conditions change.
However, with consistent dividends and ambitious growth targets, Aviva shares remain a compelling option for investors looking for better-than-average market returns. As such, they warrant consideration for inclusion in an investment portfolio.
