Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. Rupert Hargreaves delves into the numbers.

Aviva offices
The investment case for Aviva is all about the company’s dividend.
(Image credit: © BEN STANSALL/AFP via Getty Images)

Insurance giant Aviva (LSE: AV) is flush with cash and it doesn’t look as if management is planning to hold on to this money for long.

Only months after returning £4.75bn to shareholders by way of a share buyback, the group is now planning further investor returns. In its first half results, Aviva said its Solvency II ratio - a measure of insurer liquidity against the minimum required by regulators - had reached 213%, significantly above both what management and regulators require.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.