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Mon, December 16, 2024

A 7% yield and down 6.5%! Ahead of the Direct Line takeover, is now the time for me to buy more Aviva shares?


Published on 2024-12-16 05:01:06 - The Motley Fool UK
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  • Aviva shares have struggled to stay above
  • 5, even after news of the intended takeover of a key rival insurer. But given their high yield does it matter?

The article from Fool.co.uk discusses the potential investment opportunity in Aviva shares, highlighting that despite a 6.5% drop in share price, Aviva offers a compelling 7% dividend yield. The author notes that Aviva has been performing well operationally, with a 13% rise in operating profit and a 9% increase in the interim dividend. The article also mentions the upcoming takeover of Direct Line by Ageas, which might influence investor sentiment towards insurance stocks like Aviva. Despite the share price decline, the author sees Aviva as undervalued, especially with its strong financial health, including a Solvency II ratio of 200%. The writer expresses a personal interest in buying more Aviva shares, citing the high yield, potential for capital growth, and the company's strategic moves like the acquisition of AIG's UK protection business, suggesting that now could be a good time to invest.

Read the Full The Motley Fool UK Article at:
[ https://www.fool.co.uk/2024/12/16/a-7-yield-and-down-6-5-ahead-of-the-direct-line-takeover-is-now-the-time-for-me-to-buy-more-aviva-shares/ ]
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