Aviva Share Discussion Threads

[elpirata] 03/4/2020 10:25

'European Insurers Fall After Regulator Asks for Dividend Suspensions'

[deduce101] 03/4/2020 10:16

Buywell,

It is currently hypothesised that the SARS-COV-2 originated in bats, but was transmitted via pangolin's that were illegally smuggled into China, not pigs.

[panshanger1] 03/4/2020 10:08

No but he collected a lot of them and in the early days insurance was a big part of that

[p0pper] 03/4/2020 09:56

I just wish that the likes of here and Lgen would put out a statement to put an end to this downward spiral.

[spud] 03/4/2020 09:55

No one is disputing that careful! What they are disputing is whether the government should be telling businesses how they should run their own shop.

HSBC being a case in point.

spud

[eeza] 03/4/2020 09:51

"If Aviva judge that it is prudent to pay the divi, because they have the cash, then we as shareholders should welcome it."

[careful] 03/4/2020 09:33

All this fuss over dividends.
If Aviva judge that it is prudent to preserve cash and cancel the divi then we as shareholders should welcome it.

Warren Buffett's Berkshire Hathaway has never pain a dividends.

[buywell3] 03/4/2020 09:32

All Insurance companies falling now

Following Banks down

Will dividends get cut ?

Won't look pretty if they do I would suggest

Meantime IMO the Covid-19 virus will probably be traced back to pigs via bats
Pigs got a nasty coronavirus in 2018 , did I mention that ?

dyor

[spcecks] 03/4/2020 09:31

Also purchased some more.

[spud] 03/4/2020 09:21

SLA have confirmed they will pay dividend. I now expect AV to follow suite and have purchased a sizeable tranche in anticipation.

spud

[pete160] 03/4/2020 07:13

And to protect those who cannot afford to pay a dividend by getting as many firms and funds as possible to suspend payments.Imo it's not so much the dividends that are critical, the cash is still there, its are the directors sharing the pain of the workers and the shareholders?

[buywell3] 03/4/2020 06:05

That is the problem , over confidence


Stocks have never bottomed when consumer confidence is at highs




Which means we could be in for two to three years of a bear market after 11 years of Bull

dyor

Good eh

[whatsup32] 02/4/2020 22:54

If a company has excess funds they don’t need in the near future what do you suggest they do. With MSFT they huge excess cash .

Their options are
1 Special dividends ( not everyone wants that option as it exposes them to taxation problems) and they may also want exposure to future growth in that company.
2. Hold cash on balance sheet. (that may not be tax efficient for the company)
3. Share buy backs reduce the number of shares out on circulation ,reducing the amount of dividends paid out and also increase PE . It’s also highly tax efficient as no taxes is paid on shares bought back

As long as future is bright then it’s an efficient way of returning cash to shareholders

[cjac39] 02/4/2020 22:52

av havent made use of furlough - i asked them. but nonetheless it still doesn't threaten divi unfort

[eeza] 02/4/2020 22:39

"If Aviva make use of HMG wages scheme for laid off workers, does it mean that as a condition of this offer, dividends and bonuses must be cancelled.?"


No. The PRA have asked Co's to be prudent when considering whether to pay Dividends. It has not instructed Co's not to pay them.

[kenmitch] 02/4/2020 22:33

I agree with much of what you say (e.g on Carnival) except on buybacks.

e.g you say Microsoft buybacks worked for their shareholders. You can’t know that as if a Company is successful the share price will eventually go up, and if a Company is unsuccessful the share price eventually will go down.

I’ve written “eventually221; as for all shares an unsuccessful Company can see its share price rise until a profits warning or bad results or delays etc and investors selling, bring reality to the share price, and vice versa with a share slow to react to good news. It will be a better than expected update or good results and investor buying or a bid that will do the trick for the share price and NOT buybacks.

We can never assume buybacks are the reason for a share price rise any more than we can say if only the Company had bought back, their share wouldn’t have fallen as much.

So much nonsense is written and believed on buybacks!

[careful] 02/4/2020 22:19

If Aviva make use of HMG wages scheme for laid off workers, does it mean that as a condition of this offer, dividends and bonuses must be cancelled.?

[whatsup32] 02/4/2020 22:00

kenmitch

I don’t think it’s one size fits all. In Microsoft’s case they have more money then they know what to do with and it’s worked for them and their shareholders to buy back shares.

In the case of Kingfisher it’s been an absolute disaster.

With the example you gave Carnival yes again a disaster and they are desperately trying to raise moneys and have had to pay near 12% to raise $4Billion . That level of interest rate smacks of desperation and on theory that’s on the back of secured assets of $24Billion valuation on ships . I would have questioned that valuation.

I’m also hoping dividends will not be cancelled by Aviva but the share price is concerning me for a supposed cash rich company in an defensive area it should have performed better.

XDiv 24th April , if we don’t hear anything , then we know it’s going to get paid :)

[kenmitch] 02/4/2020 21:37

whatsup32

Whether the share subsequently goes up or down after buybacks depends on news and buyers and sellers and not buybacks.

e.g during recent massive share price falls across the board from the off, no thought would have been given by market makers or machines or however else shares are priced about whether that Company had bought back their shares. The share price is hammered regardless.

And so many Companies now are trading way below the level of all their buybacks!

Even now commentators describe them as rewards for shareholders. That’s nonsense when the share subsequently goes lower and is questionable when it goes higher too.

£trillions have been thrown down the drain on buybacks here and in the US in the last year or so. What some of those Companies would give to have that money available to rescue the business now. Carnival is one example. In real danger of going bust. Fat lot of good those buybacks were for Carnival shareholders!

[actybod] 02/4/2020 21:06

Solvency ratio is what ? Around 190%. CFO talks about strong balance sheet. I'd be surprised if it's cut.

[carpingtris] 02/4/2020 21:06

But bet them numbers aren't being recorded in daily league table's.

[carpingtris] 02/4/2020 21:05

So cutting all the divis will surely exacerbate many companies pension pots further than they were before the crisis?

By allowing them to be paid and reinvested they'd accumulate more shares and thus any strong rebounds would help cure pension deficits.. surely?

They'll be more deaths caused from the economic impact globally than this virus at this rate.