The insurance company Aviva have today released their final results for 2016, and I love the opening statement
“Aviva’s results are simple and clear cut: more operating profit, more capital, more cash, more dividend. And there is more to come.”
The report then went on to report that operating profit was up 12%, and their total dividend for the year was up by the same amount. The real potential icing on the cake was the statement
” We are now actively planning a capital return to our shareholders and debt reduction in 2017″
As a result of this increase I will receive £841.50 compared to last years £669.15 (although this would have been £748.80 if I held the same number of shares last year – I bought additional shares in Aviva in October 2016). So an increase of £92.70 or 12.37% based on a consistent number of shares, which was again achieved by doing nothing other than taking about 5 minutes to place an order on the Barclays Stockbrokers website to buy the shares.
I have to say it is a welcome increase, as last week I had the worst possible news when Interserve did not pay any final dividend, so a 100% fall compared to last year, however this is why I hold shares in several companies, as the increase in Aviva has more than offset the fall in Interserve, and should help to ensure I receive an increase in dividends that comfortably beats inflation.
The really great news about this dividend increase is that the share price has increased by 6%, thereby increasing the value of my shareholding at a time when I shortly will be looking to start taking cash out of my investments to fund my FIRE.
Hopefully I will have many more Aviva’s than Interserve’s!