Aviva Share Discussion Threads

[ianood] 09/4/2021 07:45

Thank you Dr B, it reads very well indeed

[dr biotech] 09/4/2021 07:17

A bit from sharecast


Analysts at JP Morgan restarted their coverage of Aviva at 'overweight' after it successfully completed its disposal programme, which led them to bump up their estimates for the life insurer's earnings per share and share buybacks.

The firm was proceeding rapidly with its restructuring and had now sold its operations in Europe and Asia.

In the case of Aviva's Polish business, the sales price had in fact come in ahead of their forecasts, they pointed out.

Tied to the above, JP Morgan raised its projection for share buybacks from £3bn to £4bn.

However, the analysts continued to anticipate a Solvency II ratio for Aviva of approximately 200% "to maintain some buffer and room for modelling error."

All told, they raised their earnings per share estimates for Aviva over 2021-23 by 1%, 8% and 8%, respectively.

In turn, their end-2020 target price was hiked by 8% to 510.0p

When it comes to dividends, on JP Morgan's latest estimates Aviva shares would be changing hands on an anticipated 2023 pro-forma free-cash-flow yield of more than 10%, which they termed "attractive".

For 2021, the dividend yield was pegged at 5.3%, rising to 7% in 2023, yet its shares were trading on an estimated 2023 price-to-earnings multiple of less than eight.

As an aside, also on Wednesday, analysts at RBC Capital Markets kept their recommendation for the shares at 'outperform', alongside an unchanged target price of 450.0p.

[xamf] 09/4/2021 06:48

Completely agree Eurofox. Have used Barclays for some years as larger trades makes dealing costs irrelevant. Have looked at CFDs recently (to avoid stamp) for lesser short term trading and CMC seems best (though not yet opened).
Back in today. Been a long ride up from 2020 lows. Great to see the share price holding.

[ayl30] 08/4/2021 22:00

Featured in this weeks IC

[whatsup32] 08/4/2021 19:11

eurofox.

Is there much advantage in Level 2 on advfn.
I’m with Hargreaves , frequently they are unable to fill size at set price and I get message saying price had been reached but was unable to fill.

[eurofox] 08/4/2021 18:14

I'm glad I persevered with the Barclays Smart Investor platform. It was hell at first, but for equities they now seem to have got themselves sorted out. Dividends paid by mid-day into SIPP and ISA accounts. Good execution engine - always get good prices (I can see that because I'm running ADVFN Level 2 alongside it and have good visibility of prices and depth of orderbook) and dealing charges come in at £6 for any size of deal. Not being ripped off for the deal-sizes I use is important and makes the dealing charges at this level irrelevant.

[woodhawk] 08/4/2021 17:49

That's not cheap. IG Index is £3 per trade (for more than 3 trades per prev. month). I think IG Index are excellent - the only prob I had with them was that divis were often paid a bit late - however they've tightened that up now and are on the ball. iWEB charge £5 per trade, no minimum (+ one-off joining fee).

[klotzak] 08/4/2021 17:43

That's where I'm at. Cleared funds, requested, but up to 5 working days or I pay for chaps.AJ Bell have some I'll-thought out ideas, but are cheap at 9.95 a trade, or 4.95 if you traded 10 times in previous month.I am looking to move my dealing elsewhere, as I generally never withdraw from my ISA and too young from my SIPP

[woodhawk] 08/4/2021 16:58

Transfer from dealing acct to ISA account took 1 second with IG Index (assuming you have cleared funds - otherwise you need to wait for settlement for cleared funds from share sales to be available for transfer).

[eurofox] 08/4/2021 16:37

what a good UT result, drop from previous close is less than the dividend.

[spud] 08/4/2021 16:21

Just above £4.

spud

[eurofox] 08/4/2021 15:00

What are you hoping for spud?

[spud] 08/4/2021 14:23

My trading buy order price still not triggered. spud

[eurofox] 08/4/2021 13:30

some gamblers on selling for a lower price as an entry for a long term holding may be running out of time

[klotzak] 08/4/2021 13:09

Yay, now minus 14. It's neutral!??

[woodhawk] 08/4/2021 13:05

For some reason, IG doesn't levy stamp duty on PHNX, whereas iWEB does.

[careful] 08/4/2021 12:40

Glencore is a Swiss based miner.
TUI are a German based company.

Although they are listed in London and can be easily traded in London, but do not charge UK stamp duty.

[cassini] 08/4/2021 12:33

The stamp duty business is not due to being in a SIPP, it''s just that there are a few non-aim stocks, often miners for some reason, that do not attract stamp duty. However, not paying stamp on DGOC seems confined to interactive investor broker only so it''s an anomaly on top of an anomaly ;0)

[dk37] 08/4/2021 11:41

No stamp duty payable on AIM stocks ..payable on all fully listed UK stocks

[careful] 08/4/2021 11:37

Randgold, Glencore not UK based.
Not subject to UK stamp duty.

[spud] 08/4/2021 11:34

Shares I love: Aviva

Life insurance stocks offer cheap valuations and growing earnings
April 7, 2021
By Leonora Walters


Investors avoided life insurers last year because of concerns on economic and Brexit risks.

These companies' cyclicality is lower than it used to be and their solvency is better than during the financial crisis.

These include Aviva, which is is implementing far-reaching strategic changes and has significant scope to improve its cost base.

Alex Wright, manager of Fidelity Special Values (FSV) and Fidelity Special Situations (GB00B88V3X40), explains why he has added to life insurance company Aviva (AV.).

"Life insurers is a space I have been excited about for a while and where I increased exposure during the volatility last year," he says. "This was because these companies were shunned by investors who saw them as UK gross domestic product proxies vulnerable to economic and Brexit risks.

"But life insurers are well regulated companies with good risk management, and are seeing strong demand for bulk annuities and pension de-risking. The Covid-19 crisis has validated our investment thesis that these businesses’ cyclicality is lower than it used to be and their solvency is significantly better than during the financial crisis. Since the virus outbreak, life insurers have proved resilient and reported stronger earnings than pre-Covid.

"My conviction in life insurers has increased further due to improved company disclosure. This sector offers an attractive combination of cheap valuations, strong demand/supply fundamentals and growing earnings.

"One of the stocks I added to and is now one of our largest holdings is Aviva. Its decision to temporarily pause dividends, despite not being required to do this, spooked the market and caused its shares to lag. Although its shares have since recovered it still only trades on eight times 2022 earnings. This is despite reporting strong results last year that underlined its resilience during the Covid-19 crisis and record sales of bulk annuities.

"Last year Aviva appointed a new chief executive officer, Amanda Blanc, who is implementing far-reaching strategic changes aimed at refocusing on core businesses in the UK, Ireland and Canada. The disposal of Aviva’s international businesses has been incredibly speedy given the pandemic, with the company recently announcing the sale of its Poland business. This is its eighth divestment over the past eight months and successfully concludes its planned refocus. These disposals have been at significantly higher multiples than the stock is currently trading on.

"Aviva also has significant scope to improve its cost base – another key initiative.

"Despite recent encouraging progress with the vaccination programme, nobody can predict how the virus will evolve globally over the next year or the speed of economic recovery. But investing in resilient companies with attractive valuations and catalysts for changes has proved a rewarding strategy over the long term, and I see no reason why this should change."

spud

[thaisi] 08/4/2021 11:34

I paid SD for my AV but bought the shares 16.3p cheaper so the market paid it for me being 2.3p better than the divvy.

[eurofox] 08/4/2021 11:31

yes, SD in SIPP and ISAs