Latest news with #DividendYields
Yahoo
3 days ago
- Business
- Yahoo
Here are the latest dividend yield forecasts for Legal & General, Aviva, and M&G shares
Financial stocks like Legal & General (LSE: LGEN), Aviva (LSE: AV.) and M&G (LSE: MNG) have been great sources of income in recent years. At times, they've been offering dividend yields of up to 10%. Interested to know how much income could be on offer from these stocks in the years ahead? Let's take a look at the latest dividend forecasts for these three FTSE 100 shares. Legal & General Starting with Legal & General, it's forecast to pay out 21.7p per share in dividends for 2025 and 22.2p per share for 2026. At today's share price of 256p, that puts the forecast yields at 8.5% and 8.7%. Now, they're obviously attractive yields and more than double what most high-interest savings accounts are paying these days. However, there's no such thing as a free lunch in the investing world. So what are the risks here? Well, one is turbulence in the financial markets. This could affect the value of assets the insurer has on its balance sheet and lead to operating losses (and potentially share price losses). Another is less demand for pension risk transfer solutions. It's worth noting that analysts at RBC just downgraded the stock to Underperform from Sector Perform and cut their price target to 220p on the back of concerns here. Personally, I think the stock's worth considering for income today. However, investors do need to acknowledge that there are some risks here and that share price weakness could offset any income received. Aviva Turning to Aviva, it's forecast to pay out 38.1p per share for 2025 and 40.8p per share for 2026. At today's share price of 636p, we have prospective yields of 6% and 6.4%. These yields aren't as high as Legal & General's, but they're still attractive. The average forward-looking yield across the FTSE 100 right now is about 3.2%. So Aviva's offering nearly double that. The risks here are quite similar to Legal & General's. In relation to pension risk transfer, the company actually advised recently that volumes this year are likely to be lower than in 2024. One other thing worth highlighting here is that the stock's had a very strong run in 2025. Year to date, it's up about 35%. I think it's still worth considering as an income play. But bear in mind that after that kind of run, it could be subject to some profit taking. M&G Finally, zooming in on M&G, analysts expect payouts of 20.6p and 21.1p per share here. Given that the share price is sitting at 259p, we have yields of 8% and 8.2%. I see this stock as a bit of an undiscovered income gem. It's not nearly as popular as stocks like Legal & General and Aviva, but its yield's excellent. It also has a good track in terms of dividend growth. Since it was spun off from Prudential in 2019, it's increased its dividend every year. Again, turbulence in the financial markets is a risk factor here. It's worth noting that this stock can be quite volatile at times. Yet I see quite a bit of appeal. In my view, it's worth considering for income. The post Here are the latest dividend yield forecasts for Legal & General, Aviva, and M&G shares appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Edward Sheldon has positions in Prudential and London Stock Exchange Group. The Motley Fool UK has recommended Prudential and M&g Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
12-07-2025
- Business
- Yahoo
An 11.5% yield?! Here's the dividend forecast for a hot income stock
Renewable energy income stocks currently offer impressive dividend yields. That's because Investor sentiment in this space remains subdued due to higher interest rates and falling energy prices. And as a consequence, many of these shares are trading at discounted valuations. NextEnergy Solar Fund's (LSE:NESF) one such enterprise with its shares trading close to a 20% discount to its net asset value, offering a staggering 11.5% yield. Yet despite this pessimism, the share price has actually been on the rise this year, climbing by 11% and outpacing many of its peers. So is this just a short-term rally? Or are we looking at the start of a long-awaited rebound? As the name suggests, NextEnergy Solar focuses on investing in utility-scale solar energy infrastructure. The bulk of its asset portfolio consists of UK solar farms with some European exposure, totalling an 865 megawatt energy-generating capacity. For reference, that's roughly enough to power 330,000 homes. The business model's simple. Generate clean electricity and sell it to the grid. The continuous need for electricity makes for a highly recurring revenue model that's translated into relatively stable cash flows. As with many renewable energy enterprises, the weather can slow things down. Yet, prudent capital allocation has enabled management to continuously hike dividends every year for the last 10 years, staying ahead of inflation. And even with the headwinds of falling electricity prices, the company's robust cash coverage indicates that payouts will continue to flow to shareholders. Dividends for its 2024 fiscal year totalled 8.43p. If the latest analyst forecasts prove accurate, that's expected to increase to 8.68p by 2027. The growth rate's hardly phenomenal. But with the yield already in double-digit territory, there remains a potentially lucrative income opportunity here. Even more so as the UK strives towards a Net-Zero energy grid by 2030. If the extraordinary 11.5% dividend yield's here to stay, why aren't more investors rushing to buy shares? We've already touched on it – energy prices. While energy inflation's certainly wreaked havoc on many households lately, the long-term trends suggest that electricity's on track to get steadily cheaper over the next 20 years. That's great news for consumers, but less so for energy generators who operate with a lot of fixed costs. Lower prices mean less profit, which could eventually compromise dividends. And with just shy of £200m of debts and equivalents on its balance sheet, it could force management to sell off some of its assets at their currently discounted prices to cover upcoming loan maturities. Pairing all this with the ever-increasing erratic behaviour of the weather results in a lot of uncertainty – the bane of the investing world. All things considered, few income stocks can boast of their ability to maintain double-digit dividend yields. However, the lack of projected growth does give me pause. Even more so when considering other renewable energy firms like Greencoat UK Wind are preparing to ramp up their dividend rather than keep it stable. With that in mind, I'm personally not rushing to buy. But that doesn't mean the stock isn't worthy of a closer look from opportunistic income investors. The post An 11.5% yield?! Here's the dividend forecast for a hot income stock appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Globe and Mail
10-07-2025
- Business
- Globe and Mail
Yielding 6.3%, Is Verizon a Better Dividend Stock to Buy? Or Should You Buy AT&T Stock Instead?
Passive income investors are attracted to the robust dividend yields of Verizon (NYSE: VZ) and AT&T (NYSE: T). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » *Stock prices used were the afternoon prices of July 7, 2025. The video was published on July 9, 2025. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 179% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 7, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Forbes
21-03-2025
- Business
- Forbes
Shell's Cash Flow Increases The Safety Of Its Dividend Yield
stack of silver coins with trading chart in financial concepts and financial investment business ... [+] stock growth Tariffs have been a hot topic since President Trump started his second term, and many investors are worried about the long-term consequences. On the surface it's a simple idea, if we tax foreign imports, we will strengthen our own industries by creating more jobs and generating more cash. But, it doesn't always work so simply. When president Trump instituted tariffs on foreign steel in order to protect U.S. blue collar jobs in 2018, researchers estimate U.S steel producers added about 1,000 new jobs. However, the knock-on effects, namely input costs for U.S. industries that use steel, resulted in an estimated 75,000 fewer manufacturing jobs. The ongoing tariffs, and the uncertainty surrounding additional tariffs, will continue to stoke market volatility. Finding strong businesses with cheap valuations is hard enough, and new trade policies and tariffs only make that job more difficult. That's where New Constructs steps in. Even in volatile markets, my team scours the entire market to find the best investment opportunities. Diligence matters, now more than ever, especially in a new Golden Era of Investing. Today's free stock pick provides a summary of how I pick stocks for the Safest Dividend Yields Model Portfolio. This Model Portfolio only includes stocks that earn an attractive or very attractive rating, have positive free cash flow and economic earnings, and offer a dividend yield greater than 3%. Companies with strong free cash flow (FCF) provide higher quality and safer dividend yields because strong FCF is proof they have the cash to support the dividend. I think this portfolio provides a uniquely well-screened group of stocks that can help clients outperform. Shell, PLC (SHEL) is the featured stock in our Safest Dividend Yields Model Portfolio. Shell has grown revenue and net operating profit after tax (NOPAT) by 1% and 14% compounded annually, respectively, since 2015. The company's NOPAT margin improved from 3% in 2015 to 9% in the TTM, while invested capital turns remained the same at 0.8 over the same time. Rising NOPAT margins drive the company's return on invested capital (ROIC) from 3% in 2015 to 8% in the TTM. Figure 1: Shell's Revenue & NOPAT Since 2015 SHEL Revenue & NOPAT 2015-TTM Shell has increased its regular dividend from $0.32/share in 2Q20 to $0.72/share in 1Q25. The current quarterly dividend, when annualized provides a 4.2% dividend yield. The company's free cash flow (FCF) easily exceeds its regular dividend payments. From 2020 through 3Q24, the company generated $145.7 billion (53% of current enterprise value) in FCF while paying $36 billion in regular dividends. See Figure 2. Figure 2: Shell's FCF Vs. Regular Dividends Since 2020 SHEL Free Cash Flow & Dividends As Figure 2 shows, this company's dividends are backed by a history of reliable cash flows. Dividends from companies with low or negative FCF are less dependable since the company would not be able to sustain paying dividends. At its current price of $67/share, this stock has a price-to-economic book value (PEBV) ratio of 0.5. This ratio means the market expects the company's NOPAT to permanently fall 50% from TTM levels. This expectation seems overly pessimistic given that the company has grown NOPAT 14% compounded annually over the last eight years and 3% compounded annually over the past decade. Even if the company's: the stock would be worth $91/share today – a 36% upside. In this scenario, the company's NOPAT would actually fall 3% compounded annually through 2033. Should the company's NOPAT grow more in line with historical growth rates, the stock has even more upside. Below are specifics on the adjustments I make based on Robo-Analyst findings in this featured stock's 20-F and 6-Ks: Income Statement: I made nearly $22 billion in adjustments with a net effect of removing just under $9 billion in non-operating expenses. Balance Sheet: I made around $127 billion in adjustments to calculate invested capital with a net increase of over $56 billion. The most notable adjustment was for asset write downs. Valuation: I made over $118 billion in adjustments to shareholder value, with a net decrease of around $52 billion. Other than total debt, the most notable adjustment to shareholder value was for excess cash. Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
