Looking At Aviva plc (LON:AV.) From All Angles

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Aviva plc (LON:AV.) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AV., it is a notable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Aviva here.

Undervalued established dividend payer

AV.'s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, AV.'s share price is trading below the group's average. This further reaffirms that AV. is potentially undervalued.

LSE:AV. Intrinsic value, May 30th 2019
LSE:AV. Intrinsic value, May 30th 2019

AV.’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.5%.

LSE:AV. Historical Dividend Yield, May 30th 2019
LSE:AV. Historical Dividend Yield, May 30th 2019

Next Steps:

For Aviva, I've put together three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for AV.’s future growth? Take a look at our free research report of analyst consensus for AV.’s outlook.

  2. Historical Performance: What has AV.'s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AV.? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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