Aviva Share Discussion Threads

[my retirement fund] 17/1/2020 01:01

Who would want to invest in a country where their politicians are constantly at war with each other over leaving the EU in a slow motion car crash?

[spud] 16/1/2020 20:02

Compared to the DOW up 67% over the past 5 years, we're up just 16%. The Market here is so undervalued compared to the US that at some point it'll just have to play catch-up. 2020?spud

[whatsup32] 16/1/2020 19:58

nisbet.. I get that and understand we’re been given juicy dividends and that would be fine if I had bought in around these levels but unfortunately I’m in at £4.78 plus div of .30p so £4.48 which is still a loss of 10% .
I’m big boy understand risks and fortunate that I’m not pushed to sell but at the end of the day Aviva has proved to be a bad investment.

I look forward to the day when we finally have a sound CEO but seems unlikely given Maurice just got the job .

It’s looking like a long road

[nisbet] 16/1/2020 19:05

Whatsup32, the performance of a company’s underlying equity is a function of its earnings profile, growing dividend and market confidence that the business model is appropriate and that the management will make the right decisions for the future growth of earnings and consequently dividends.

Where there is a lack of confidence in the Board of Directors to achieve what is expected, the market will accord a P/E discount and a yield premium. The yield premium, to an extent will be seen as small compensation for the inadequacies of historical Board decisions, and perhaps, a realisation that the current business model will produce much the same for the foreseeable future.

Many companies that fit the above profile have found themselves on the wrong side of corporate activity, and after recent decisions made by the new CEO, it would not surprise me to see some aggression being shown towards Aviva. Also, bear in mind that substantial excess capital will give the board great flexibility in any attempt to provoke a re-rating in the company's equity. In the meantime, collect the dividend flow and buttress your bank balance.

[coxsmn] 16/1/2020 18:53

March 2019, "Aviva said it would move from a dividend policy targeting a payout of half its earnings per share to a 'progressive' policy it said would likely result in more modest rises."http://citywire.co.uk/funds-insider/news/aviva-drags-down-ftse-on-dividend-disappointment/a1207440

[yump] 16/1/2020 17:56

Check peoples' other posts before taking them seriously if they're gloomy for no reason. EZJ for instance.

[whatsup32] 16/1/2020 17:11

nisbet....yes agree but I can’t get around why share price is so low. As far as I know it’s business as usual so why?

[nisbet] 16/1/2020 16:59

The company has substantial surplus capital and increased the interim dividend by 2.7 percent so talk of a dividend cut is quite ridiculous.

[cordwainer] 16/1/2020 13:29

So let me try and get this straight: hiving off global ops can generate short term shareholder returns, holding on to them can reduce cyclicality for long term uk shareholders ??

Meanwhile, with this dividend I can live with the share price going in a sideways channel.

[jeffian] 16/1/2020 13:04

#564/565,

Well mine was a response to spud's #554!

[whatsup32] 16/1/2020 12:17

Getting a bit tired of this. Company of this size needs a better CEO with some imagination. We shouldn’t have to sit on AV. shares hoping for a takeover to enliven share price

[carpingtris] 16/1/2020 11:57

So what we really need is a 'takeover' rumour? ;) instead of all the doom and gloom!

[eurofox] 16/1/2020 11:56

p0pper,

likewise, amazing what people will turn into a rumour - topping up at all dips

[spud] 16/1/2020 11:08

Aviva Investors buys £106m London hotel development site
BY IPE STAFF15 JANUARY 2020



Aviva Investors has bought a £106m (€124m) hotel development site in East London on behalf of its long-income real estate fund.

The £2.7bn Lime Property Fund has acquired the site in the Docklands, which will be developed by into a 30-storey 400-bed Premier Inn hotel.

Whitbread, Premier Inn’s parent company, will take a 35-year lease on the hotel and restaurant.

The site, which will be developed by Rockwell, is expected to be completed early 2022.

Kris McPhail, fund manager, Aviva Investors, said: “We are pleased to participate in this scheme with Rockwell and play a part in rejuvenating the site.

“The transaction provides our investors with an attractive 35-year inflation-linked income stream from a market-leading UK corporate, underpinned by strong real estate with excellent transport links. These are exactly the type of investments we target for the Lime Property Fund.”

The fund targets property investments that provide inflation-linked or fixed-rental uplifts let to strong tenants on leases of at least 15 years, cross-sector, UK-wide.

Donal Mulryan, founder of Rockwell, said: “We are delighted to complete the £106m transaction with Aviva Investors, for the exceptional hotel-led scheme positioned in a prime location adjacent to Westferry DLR station.

“This notable acquisition further demonstrates our proven track-record and supports our ambitious plans for the London hotel sector with the creation of more than 2,500 hotel rooms.”

spud

[p0pper] 16/1/2020 11:08

spud I think someone threw it out there and the herd have carried on with the rumour, no where at all has Aviva stated they may cut divi. Long and strong here with a shed full.

[spud] 16/1/2020 11:04

Not sure where you guys are getting a divi cut from? Can you post a link please?

Tia

spud

PS I'm not expecting any divi cut links.....

[jeffian] 16/1/2020 10:54

Possibly, but not if they cut the divi!

[carpingtris] 16/1/2020 10:47

Well looking at that chart I'd say we're due 550p? ;)

[eeza] 16/1/2020 10:19

However, the Co, obviously, is oblivious to the result, and is the poster child for the definition of madness.

[jeffian] 16/1/2020 09:49

Re a dividend cut, all the evidence of the history of this share is that, far from leading to "increased share value", it would result in an equivalent fall to maintain the divi yield. The company (in)famously "rebalanced"(!) its dividend by 40% in February 2002 and there were further cuts in 2008, 2011 and 2013. The graph tells the story......

[spud] 16/1/2020 08:59

Yes I agree with you. I'm not looking for a divi cut as this and most of my portfolio is for income. Only INL is for capital appreciation. spud

[uppompeii] 16/1/2020 08:32

Spud, last time they lowered the divi the share price crashed...the performance is poor enough without even thinking about that scenario! I was looking at my sipp and this is by far the biggest drag on it, though the divi is welcome and I am more income focused now.Thankfully I've got decent exposure in worldwide funds and UK outside the 100.

[uppompeii] 15/1/2020 08:13

At least Aviva is consistent...