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I think this will get to 250p

According to the valuation, the intrinsic value for the stock is £2.76, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low.

I think someone is confident this will go north. ? Why so much + today

Your future dividend will be same or little bit more if you don't reinvest so basically you will have same div for lower investment, and if you reinvest then dividend receipt to you will lot higher almost 25% for your original investment. It's share consolidation without changing total dividend Aviva pays out.

Say if Aviva had 10,000 shares in market and you own 100 which is 1%
Consolidation at 76/100 means you will own 76 now and Aviva will have 7600. So still 1% of market

By 31st you will get £1.0169 per original shares that's £101.69 which is £4.237 per share for 24 shares

Dividend
As Aviva now have less shares in market to pay dividends for and they will pay same £ as a dividend and you should receive 31p per share 76x31p=£23.56 instead of 22p =£22

So you have same % of holding with little higher dividend receipt.
If you want to buy those 24 shares back then you would receive 100x31p=£31 yearly with same £ invested as long as you buy at £4.237 but you can buy below 4.237 at the moment and receive even more dividend with those little extra shares.

Buy back similar to this, it's Aviva buying back from market instead from you with this consolidation method above.
How this helps

https://vm.tiktok.com/ZMLtoMN7S/

Obviously with higher freight cost etc this would have reduced the margin but the current share price gives us opportunity for future.
Have you seen this?

#Don't pay tax

ISA are free of capital gains tax and free of income tax for dividend.

So you don't post tax on either. Just googled it ??

Do we think there will be more people holding the Aviva shares until capital return and future dividend to see how it will look like for new share price and higher dividend?

pike
Difference between capital return and dividend
Just like after ex dividend date share price goes down, payout /return of capital £1.0169 would reduce share price by that, same impact no difference.

The only thing is consolidation of same % as £1.0169 and that would keep share price unaffected, then there's increase in EPS, DPS etc will affect the new share price upwards.

Does this explain?

If you're not happy with CGT... Aviva did well in terms of timing. They could have done this back in March and no option or planning for us to manage CGT .

For CGT purpose if any due, it will be for 2022/23 and you have full year to plan other things...

All the best

If Aviva had purchased 24% of shares instead of capital return then you won't be happy... But you won't have to pay CGT tax would you make that happy? it would be a lot different story.

They are buying your 24% shares back at 4.237 which are trading at 4.35 and it will go up even further... very smart move...

Anyone? I bought it at 135p

Realist
Please share your knowledge of other share holding and we all can benefit together :)

I don't understand why people don't see this?
31p per new share after consolidation or about 23.56p per current share
31 = (23.56/0.76) both same before and after
And there's a lot more chance for price to go up than down. As 31p/430p would be a lot better instead of 23.56/430p
Do you really think it will go below current levels? :D
I had an opportunity to buy at 420~ so I did, if goes to 400 due to people scared of all return of capital etc and sell thanks for your support for getting my next target, but I don't plan on selling.

Your calculation formula really helped me today, but it should be 0.76 not 0.74 as per Devon

N=No of Shares
P=Current Price
0.76 = Consolidation rate
c = Cost of buying more shares
q=New Share Price after consolidation
1.005 = 0.5% Stamp Duty

So your formula using 1000 Shares at £4.25 current price and at £10 cost of buying
np=0.76nq+(1.0169n-c)/1.005
1000x£4.25 = 0.76x1000xq+(1.0169x1000-10)/1.005

and I get q=£4.27

So we were all happy with £4.25 current price which was based at 5% + costs against your assumed price of £4.27 at new increased dividend % of 7.25%... I will go with 7.25% Thank you ... and if the price goes below £4.10 I will buy back more from £1.0169/share return to increase DPS at 0.31/4.10=7.5%

Clearly it's a big risk of selling now and waiting to see what we will get to after consolidation and... when div % increases to 7.25%

Also Devon
The reason for Aviva's own calculator is looking to achieve the same share price immediately post consolidation...

3.75b buy back of 15.7b market capital and 76/100 consolidation will be 24% reduction in both.. is the reason.

Why would Aviva reduce your shares at let's say 35% by 65/100 consolidation and give money back to you 24% of market capitalisation...
That would be a loss to shareholders.

Both% has to be same in our case 24%
I see Upwards to £5+/share from May.22....

@Devon

Where's £4 coming from? I think it would stay at 4.30 and upwards

Current Share capital 15.75b with 3,687,321,923 shares
Less £3.75b given back to shareholders = 12bn divided by 2.8b share = £4.30~ per share( 2.8b shares which is 76% of 3,687,321,923 consolidation)

And with higher dividend yield it would go north.

Would you buy more share at same price £4.30 if dividend payout increased from 22p to 31p ?

Another way to look at this to see why share price would go north. £5 +

ATB with £4 price

£4.30 X 1000 shares = £4300 investment at 22p/Div per share = £220/£4300= 5%
If I keep this and once consolidated I'll have
760 shares div at 31p/share =£235.60
That's on investment of £3268 (760 X £4.30) assume share price stays same

£235.60/£3268 = 7.2%

So I should buy more now for better ROI ? ??
When price goes up e.g. 500~600 etc
Assume more demand with better ROI I'll have capital appreciation on top as well.

I think it's win win situation here ??

Is below correct??
If I've got 1000 shares at 4.40 that's £4400, giving me 5% return of 22p/share

After special div and conditions 76/100
I'll have £1000(assume 100p) as special div, +760 shares (1000x76/100) at 340p(440p less 100p)

New normal div of 30p so 30/5% assuming expected 5% return as before so new price will go up to 600p (30/5x100)

so my new holding could be worth 600px760= £4560+£1000 in the bank so £5560???

Any experienced people's comments?