Whilst it has to pass a vote I do think the £AV. proposed capital return and share consolidation will go ahead this month.
The output from this is a float reduction (100 shares become 76) and an expected yield around 7% which brings it into line with a number of its competitors.
If I want to keep the cash invested in this sector I’m pondering if it may be best to diversify away from Aviva, which is the only insurance company I hold.
Using the comparison tool on Stocko Legal & General (LON:LGEN) comes out as the ‘winner’ and does have a better divvy record, however Chesnara (LON:CSN) has a slightly higher divvy & a good record of these increasing, along with the better Stock Rank of the three.
Beazley (LON:BEZ) looks like it may have the better growth potential however a much lower divvy.
I know there are a few other insurance companies to consider, and actually consideration could be given to investing in another sector completely or remaining in cash. This post isn’t intended to be an in depth review of the sector, more opening up a debate with other Aviva holders on what they plan to do with the capital return.
