Ftse 100 A £1,000 investment in Phoenix Group Holdings today would buy approximately 142 shares, based on the current share price of around 696.5p. The company’s impressive 7.78% dividend yield makes it an appealing option for income-seeking investors.
Why Phoenix Stands Out:
- Strong cash generation: Phoenix recently reported a 22% increase in operating cash to £1.4 billion.
- Growing dividends: The company raised its full-year dividend to 54p per share, with a final payout of 27.35p.
- Reliable track record: It has maintained or increased its dividend in nine of the past eleven years, with an average annual growth rate of around 2.9%.
- Positive outlook: Management aims to generate £5.1 billion in cash between 2024 and 2026, supporting continued shareholder returns.
Potential Returns:
With analysts forecasting a dividend of 56p per share in 2025, a £1,000 investment could earn around £79.52 in income over the next year. While a slight share price dip (~2%) is projected, the high yield and long-term compounding potential could result in strong total returns.
Bottom Line:
Phoenix Group offers both a solid dividend and a credible growth plan, making it a compelling choice for patient, income-focused investors.
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