M&G shares yield a forward dividend of 8.5%

Much of the talk prior to these results was related to speculative bid rumours for hybrid money manager M&G (MNG) as talk swirled around the market that an imminent hostile bid was in the works. Indeed, the chief executive of Australian investment bank Macquarie, the object of suitor rumours, went on the record to dismiss the talk as “speculative”. While that seems to be the case, it underlines the sometimes, less than positive, impression that the direction and execution of M&G’s growth strategy has made since it was spun out from Prudential in 2019. Those doubts go some way to explaining why the company’s shares have been consistently some of the highest yielding on the market. The question that management may have to answer is this: could someone else do a better job?