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Phoenix dividend gains altitude

Life insurance was one of the few sectors to emerge from the pandemic with payouts intact and Phoenix Group investors are now due an income boost if the company hits its targets
September 23, 2021
  • Investors may soon believe Phoenix can continue to grow its dividend
  • Brexit could create acquisition opportunities
Tip style
Income
Risk rating
Medium
Timescale
Medium Term
Bull points
  • Organic cash generation looks on target
  • Bulk annuities should rebound
  • Post-Brexit changes to regulation will push up life book sales
  • Director buying
Bear points
  • No obvious M&A targets

Life insurer Phoenix Group (PNHX) is one of the select group of companies to have increased its dividend in the teeth of the pandemic. However, the need to build up its organic cash generation has overshadowed its ability to lift the payout last year. That has meant a prolonged period of share price attrition. The price has fallen 23 per cent over the past 12 months. But the shares now boast a meaty yield, which stands out amongst its listed peers.

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