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This was a great post Trotsky - However could you just explain how you get to the C134p for the new shares?? I really can't quite get my head round it to compare onions with onions :) Thank you !!
"AoC, the 285p figure I quoted is not my figure; it's LSE's. Check the historical chart.
I've checked some AV purchases I made in Aug/Sep 2020 and they agree with the prices quoted on the historical chart, so I think it's safe to assume that LSE has not adjusted the older share prices to take account of the capital reduction in April 2022 when we each received 76 new shares for every 100 old shares held. So, I would asssume that your (sarcastic) "think about it?" comment would be in reference to multiplying LSE's figure of c285p by 100/76 (which would give your figure of c368p, allowing for some rounding differences).
Hmm, so far so good, but what about the c102p per old share (or c134p per new share) we received as part of the capital reduction? For a proper like-for-like comparison, you'd need to either add the c134p to today's price i.e. 368p vs c551p or deduct it from the adjusted July 2020 share price i.e. 234p vs 417p. You can't simply ignore the capital return or discount it as if it was a normal dividend return (it wasn't paid out of AV's current year profits and is non-recurring) simply because it's convenient for your argument.
For example, if (say) you'd originally bought 1,000 old shares at 284.5pps (LSE's quoted closing price) on 6 July 2020 they'd have cost you £2,845. Today, you'd own 760 new shares which, at 417pps, would be worth c£3,169. However, you'd have also received c£1,018 as part of the capital reduction. QED if you'd bought 1,000 old shares for £2,845 on 6 July 2020 and sold your 760 new shares today at c417p you'd have generated a total capital return of c£4,187 plus annual dividends of c£793 i.e. a capital return of c47% and/or an overall return of c75%. Not that bad when you consider Covid, war in Ukraine, Truss-enomics, rampant inflation, near zero growth etc. LGEN (run by a man) doesn't even bear comparison (unfortunately)."
Plus the Divi to look forward to:-
https://www.aviva.com/investors/dividends/
Things are looking a lot more promising.......... about time hey !!
https://www.ii.co.uk/analysis-commentary/aviva-shares-tipped-generate-big-income-and-capital-returns-ii530825
Agreed - and this Yahoo article.
It talks about a falling share price - which is surely the special divi/buy back - which plays with the historical date. A positive piece even if some of it is wrong! Seems like lazy journalists.... and poor reporting.
https://uk.finance.yahoo.com/news/8-1-yield-aviva-share-070902551.html
Yes - I know what you are saying, my holding is in the main from old SAYE investments. I also recall how Pru and Av were about the same - @ �7 some 10/11 years ago. Pru went for the far east and the rest is history. That article seems to have some mileage and perhaps partly explains the little recent increase - currently 545. Fingers crossed for a bit more :)
Yes - I know what you are saying, my holding is in the main from old SAYE investments. I also recall how Pru and Av were about the same - @ �7 some 10/11 years ago. Pru went for the far east and the rest is history. That article seems to have some mileage and perhaps partly explains the little recent increase - currently 545. Fingers crossed for a bit more :)
https://www.fool.co.uk/investing/2018/05/07/is-the-aviva-share-price-a-ftse-100-bargain-or-a-value-trap/ I know we have seen it before, but this suggests a rosie outlook.
Crystal ball time - where from here? She has been virtually stuck @ �5 for such a long time, so a 20p rise in 48 hrs is very welcome. The market is of course up, lets hope Aviva can just hold near this new price (at least).... ??
Certainly no harm in taking a profit and yes she has been on a good run of late. To be fair though she is holding up well - several negative days on the ftse/financials and yet AV is heading north, slowly but surely. Seems steady for the moment. Only wish my other financials (banks) were doing so well.
http://www.telegraph.co.uk/finance/personalfinance/pensions/10728440/Savers-locked-into-rip-off-pensions-and-investments-may-be-free-to-exit-regulators-will-say.html Another story re this news - all insurers are understandably down.