Should i buy phoenix group shares

Our writer explains why he'd snap up what he sees as bargain FTSE shares now rather than waiting in….

These two figures may not be coincidental. A double-digit yield always catches the eye. Especially for an investor like me, who favours income over growth. The big danger is that it proves too expensive to maintain, yet there are reasons why this supersized payout might just be sustainable. The Phoenix share price is down

Should i buy phoenix group shares

Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More. With the shares down from their high this year, I am seriously considering buying more for three key reasons. This signals to me a potential major valuation gap in the stock. There is a risk that high inflation and interest rates may cause a deterioration in the assets it manages. Another is that high inflation pushes insurance premiums up and prompts customers to cancel policies. Phoenix Group is undervalued compared to this. To gauge how much, I used the discounted cash flow DCF method. This does not mean that the stock will reach that point. But it does further underline to me that it appears undervalued. In , Phoenix Group paid an interim dividend of It is magic because investors would double their money if the yield stayed the same over 10 years. This would not include gains or losses made from share price movements during the period, or tax liabilities. Extremely important for me as well is that such payments are reasonably well-covered by the business.

Encouraging as well is that the interim dividend this year was 4. ETF Center.

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When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Should i buy phoenix group shares

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Financials by Morningstar. The Motley Fool UK has no position in any of the shares mentioned. Is PHNX overvalued? Dividend Yield Calculator. The Best Analyst Covering tool allows you to follow the analysts who have the best success rates and average returns on a specific stock. Earnings Events by Wall Street Horizon. Phoenix Group Holdings plc. The FTSE is packed full of world-class dividend stocks that could give me a high and rising passive income. Financial Times Close. I've been on a shopping spree adding a heap of bargain FTSE shares to my portfolio. Phoenix Group Holdings plc operates in the long-term savings and retirement business in Europe. Only analysts that gave a Buy or Sell rating on the stock in the past 12 months are eligible for inclusion in this tool. The 13 analysts covering the company expect dividends of 0. Markets are on a knife edge as investors wait to see whether inflation and interest rates have really peaked, and just how bad things get in the Middle East. See more regulatory news.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice.

Earnings are forecast to grow More than 2 is considered healthy, less than 1. Div growth TTM 3. Buy: Today's buy and sell prices The price at which you can buy a share or investment. Consensus forecasts updated Dec Full year earnings: EPS and revenues miss analyst expectations Mar You divide the net profit by the number of shares in issue. Market Holidays. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more.