Aviva Shares and Dividends Could Double £10,000 in 12 Months
Investing in Aviva (LSE: AV) shares has proven rewarding over the past year. The company, known for its insurer and asset management services within the FTSE 100, has delivered substantial returns to its shareholders.
Remarkable Share Price Growth
In the last 12 months, Aviva’s share price increased by 34.3%. When factoring in a trailing dividend yield of 5.4%, the total return for investors reaches approximately 39.7%. An investment of £10,000 would now be worth around £13,970.
Long-Term Performance
Over a longer five-year span, Aviva shares have surged nearly 99%, resulting in a total return exceeding 130% if dividends are reinvested. This performance positions Aviva as a strong candidate for those seeking stable long-term growth, especially when compared to other growth stocks.
Leadership and Strategy
Much of Aviva’s success is attributed to its CEO, Amanda Blanc, who has led the company since July 2020. Blanc has effectively streamlined operations, concentrating on core markets including the UK, Ireland, and Canada. By divesting weaker assets, Aviva has significantly enhanced its operating profits, which rose by 22% to £1.07 billion in the first half of 2025.
Expansion and Their Impact
Last year, Aviva made headlines with its £3.7 billion acquisition of Direct Line Group. This move expanded Aviva’s business and strengthened its position in the general insurance sector. As a result, shareholders have seen consistent dividend growth, with a compound annual growth rate of 23.2% over the last five years. This contrasts sharply with a mere 2.77% over the prior 15 years.
Future Projections
The forecasted dividend yield for the full-year 2025 stands at 5.8% and could reach 6.2% by 2026, indicating sustainable income growth. However, Aviva’s price-to-earnings (P/E) ratio has risen to 29, with a forward P/E ratio of 13.8 suggesting continued earnings growth.
Expert Opinions
Analysts provide varied forecasts for Aviva. A consensus target share price of 692.6p indicates a potential rise of 3.8% from its current rate of 667p. Including the anticipated yield of 5.8%, the total return approximates 9.6%, transforming a £10,000 investment into roughly £10,960.
- Eight analysts recommend Aviva as a Strong Buy
- Eight suggest holding the stock
- Only one analyst advocates for selling
Despite its solid diversification into general insurance, wealth management, and life products, concerns remain regarding potential cyclicality in general insurance profits. A market downturn could adversely affect Aviva’s wealth management sector due to declining assets and inflows. While growth may slow, Aviva still presents a compelling investment opportunity for those taking a long-term approach.
