Aviva (LSE: AV) Equities have been very strong over the past year and are now above the pre-pandemic price of 400p. Strong management under the Amanda Blank makes this powerful performance possible.
After its acquisition in July 2020, Blanc helped insurers reform and simplify, selling many of its businesses in France, Italy and Singapore. Bran’s positive impact is reflected in some highly resilient earnings.
However, there is always the risk that optimism will soon begin to disappear and share will peak. With this possibility in mind, this is what I am doing.
Effect of management
Amanda Blank didn’t waste time making changes to her business. And I think these changes were in great need!
Over the past few years, Aviva has suffered from its complex structure and stock prices have been sluggish. Bran is aware of this fact and is not afraid to make a big difference in its business.
At the end of last week Allianz Have pBuy Aviva’s Polish business For € 2.5 billion, subject to regulatory approval. This means that various sales of non-core units have generated € 7.5 billion in cash revenue. These large numbers help companies plan debt reductions and return capital to shareholders. The deal could also boost Aviva’s share price above 400p, giving the company even more momentum.
The latest information on Aviva’s recent year-round transactions shows that the company is dealing well with the pandemic. Operating income totaled close to £ 3.2 billion, a slight decrease from 2019. Following non-core sales, the center’s liquidity nearly doubled to £ 4.1 billion, demonstrating Aviva’s financial strength. The company also announced an annual dividend of 21 pence. This currently corresponds to a yield of 5% or more. This can increase as the company’s debt pile decreases. Therefore, it is understandable why Aviva’s stock price has been strong recently.
Despite this resilient performance, there are still risks associated with investing in equities. Like many sectors, pandemics are impacting insurance because they require more payments. Aviva has performed resiliently in this environment, but continued uncertainty can result in poor performance over the next few months.
What are you doing with Aviva stock?
Aviva is one of me because of its strong management and business planning Current favorite stock To FTSE100. So I haven’t sold my position yet. Nevertheless, at 400p, its share is not as cheap as it used to be and is ready to fall in the near future. This means that I will not buy any more shares.
But in the long run, I’m optimistic. The company’s current price-earnings ratio is 7.5 and it intends to achieve strong shareholder returns over the next few years. So, in the long run, I believe Aviva is a great investment. Waiting for a potential dip before buying any more stocks!
Stuart Blair owns a stake in Aviva. Motley Fool UK does not have a position in any of the listed shares. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by examining different insights, Better investors than us.
Above 400p, this is what I do with Aviva strains
https://www.fool.co.uk/investing/2021/03/29/aviva-shares-400p/ Above 400p, this is what I do with Aviva strains