Aviva Share Discussion Threads

[igoe104] 01/4/2020 12:45

It would look very good for AV going forward for a income investment, if the dividend is paid. knowing it a safer dividend investment than banks. In the future it should run off a higher P/E.

[spcecks] 01/4/2020 12:40

I'm optimistic they will still pay the dividend.

[spud] 01/4/2020 12:34

Or, the Company could confirm that 2020 dividends were intact and watch as the PFMs jump onboard with the resultant increase in share value.

spud

[whatsup32] 01/4/2020 12:29

Well dividend cancellation is surely in the price now. All we need to know is Aviva's corona related claims and then we'll know where we stand . I’m in for the long haul (not sure if I have any choice).

Not paying dividend is not a great issue, when shares go xdiv share price should go down similar amount to div. paid . So if you needed dividend money just sell some shares , it will probably be better tax wise as you will be showing a loss and not having to pay tax on income.

We live in challenging times.

[spud] 01/4/2020 12:07

Dividend suspensions ‘heavy-handed’

John Cronin, financial analyst at Irish investment bank Goodbody, said the bank dividend cut was tougher than expected.

“It was heavier-handed than we thought on two fronts,” he said in a note to investors.

“We expected that both proposed dividends – and dividends for the next six months – would be suspended, not cancelled.

“And we were surprised that the variable remuneration restrictions are wider in their application, i.e., they stretch beyond just the executive layer.”

He added that Goodbody hopes banks have simply delayed bonuses, rather than cancelled them.

“On the latter, hopefully, it will be a postponement rather than a cancellation for 2020 to the extent that banks show they can get through the worst of this crisis with their capital positions intact – which we believe they will.”

And Richard Hunter, head of markets at Interactive Investor, said the suspension of bank dividends comes after their share prices already took the dividend payments into account in late March.

“It begs the question of how or whether these share prices will be compensated for the previous ex-dividend markdowns,” he said. “On ex-dividend day, share prices are reduced by the amount of the upcoming dividend. It is unclear whether this can be reversed.”

spud

[crossing_the_rubicon] 01/4/2020 12:04

"montyhedge1 Apr '20 - 06:54 - 1655 of 1662
Gov through the PRA have stuffed the banks"

They've also stuffed all the pensioners, and the Prudent too, who rely on their dividend income to engage in "Consumption" thereby smashing the economy with yet another demand shock I expect.

Not very clever.
If the banks are able to pay a divi comfortably,they should do so.

If they collapse later down the round then the "Depositors" should be protected, the equity and bond holders left holding the bag.

[spcecks] 01/4/2020 11:15

I would just wait and hear it from the company regarding the dividend some other companies are still paying their dividends.

[dr biotech] 01/4/2020 11:15

Dear CEO,
We are writing today to UK insurers about distribution of profits.
When UK insurers’ boards are considering any distributions to shareholders or making decisions on
variable remuneration, we expect them to pay close attention to the need to protect policyholders and
maintain safety and soundness, and in so doing to ensure that their firm can play its full part in supporting
the real economy throughout the economic disruption arising from Covid-19.
Through their provision of both general and life insurance products, insurers provide an essential safety
net for individuals and businesses. They also have an important role as long-term investors in the UK
economy. In the current situation of high uncertainty, it is therefore critical that insurers manage their
financial resources prudently in order both to ensure that they are able to meet the commitments they
have made to policyholders in a way that is consistent with the expectations of the Financial Conduct
Authority, and to enable them to continue to invest in the economy.
Firms are also reminded, in the current exceptional situation, of the PRA’s existing expectation (set out in
Supervisory Statement 4/18) that when deciding on distributions boards should satisfy themselves that
each distribution is prudent and consistent with their risk appetite.
Please share a copy of this letter with your Board. The PRA intends to publish this letter

[cjac39] 01/4/2020 11:08

actually the pra are being muppets

hxxps://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/letter/2020/letter-from-sam-woods-to-insurers-distribution-of-profits.pdf?la=en&hash=C1FF7D6C560E1C377CC35C1513E27F16646A1B70

that is the end of all divis

[cjac39] 01/4/2020 11:06

wba1 you and i are in perfect agreement! it wont actually be the pra in all likelihood - it will be the NEDs that will not want to take the reputational risk on paying divis when all others are not. however we've seen the scr surplus move a modest 20% into the extremes of mid march so they will be fine. its amazing to me still that equity markets (and credit markets) still don't understand the resilience of insurance company balance sheets

[xamf] 01/4/2020 10:24

Bought another tranche at 246 this morning. Dividend or no dividend, Aviva may have faired well due to lockdown conditions and it’s already on a stupidly low PE.

[wba1] 01/4/2020 10:21

Just noticed Gary1966 last sentence. What we need is another CEO like David Prosser of L&G, who eviscerated the FSA in court in 2004 when they attempted a shakedown for an invented misselling case.

[cool hand kev] 01/4/2020 10:19

Well so be it, No rush :-)

[wba1] 01/4/2020 10:17

Makes no difference unless you rely on the divi. At the end of all this retaining the divi will simply mean that Aviva (and other insurers) have so much excess regulatory capital that they will be forced to either pay special dividends or launch huge share buybacks. It is annoying short term (and indicative of the BOE adding to police state tendencies being displayed by this government), but unlike the banks (who may need extra capital to withstand the losses from bad loans the government are pressing them to make) insurers are much better placed.

[buywell3] 01/4/2020 09:44

200p coming IMO by friday as FTSE goes back below 5000

dyor

[lako42] 01/4/2020 09:41

Strange Kev, this is absolutely nailed on to retest the recent low point.

[buywell3] 01/4/2020 09:36

All in kev ?

buywell sees 4500 coming soon

what price then ?

twist

dyor

[cool hand kev] 01/4/2020 08:43

In at 248 :-)

[p0pper] 01/4/2020 08:24

LGEN hit even harder than Aviva, stupid market at the moment.

[uppompeii] 01/4/2020 08:17

Bit harsh aviva falling more than the banks!

[harrida5050] 01/4/2020 08:01

Yes expect dividend here will be cancelled as well

[buywell3] 01/4/2020 07:56

Looks like all UK banks doing the same as STAN

No dividends no buybacks all stopped today

RBS announcement , LLOY and BARC all now in

FTSE100 to take a hit

This action could roll over to all FTSE100 stocks IMO

Also FTSE350 and many AIM stocks , all shares going the same way IMO

dyor

[smurfy2001] 01/4/2020 07:35

Eurofox, basically everyone then lol

[montyhedge] 01/4/2020 06:54

Gov through the PRA have stuffed the banks.

[gary1966] 01/4/2020 06:52

If the BOE want to play it this way then it is only fair that people that live off their investment income are allowed to go through the furlough process and claim 80% of their lost income. BOE sending yet another message that saving is the worst thing you can do and we should all work until we drop dead.

I just hope some of these companies have the courage to tell the BOE/PRA to go do one. Tobacco companies could become popular again!!