My Views On Aviva’s Dividend4 Apr 2020 15:02
The company’s solvency coverage ration is about 175 percent AFTER paying their upcoming dividend. Aviva can make the dividend payment comfortably without leaving themselves short.
If they were a company in distress it would be different; to pay or not to pay is a question of rationale and the answer is - yes they can pay it without risking the health of their finances
What irks me, is politicians and other sanctimonious bodies that are using companies dividends as a proxy for the virus to beat people down unnecessarily. Haven’t we all suffered enough without these venal peddlers and moral meddlers preaching and imposing their stomach churning morality on us. They see it as a collective punishment but why should people be punished to appease a small bunch of zealots, when there is nothing to answer to.
The fact is, pension funds, and retail investors rely on dividends and in many cases it’s the only compensation the have after seeing their shares smashed and decimated in value. Dividends were the primary foundation for investing.
I got in relatively cheap but many paid much more, so any dividend cancelation by Tory fascists will hurt long term holders most.
Aviva needs to stand up to these populist thugs and their scat tabloids. This is the private sector -KEEP OUT! There is a line here you DO NOT cross.
Toff