The Aviva share price is hovering near its highest level this year as investors cheer the company’s makeover and its exciting dividend yield. The AV stock price is trading at 425p, which is slightly below this year’s high of 450p. Nevertheless, the shares have risen by over 136% from its lowest level in 2020. In addition, it has outperformed other large companies like Prudential, Legal and General, and Schroders.
Aviva has been in a transition. In the past few years, the company has sold some of its non-core businesses to refocus on the UK’s life insurance and retirement business. In 2021, the firm raised 2.8 billion pounds when it sold its Aviva France business. It also sold Aviva Poland to Allianz in a 2.5 billion euro deal. It also sold its assets in places like Singapore, Vietnam, Hong Kong, and Turkey.
Therefore, the performance of the Aviva share price is a reflection that investors prefer a lean company. Another reason is that Aviva has been a strong buy is that the company has a high dividend. The company has a trailing dividend yield of 5.15% and a forward yield of 13.52%. This dividend is well catered for, considering that the company has boosted its free cash flow. The next Aviva earnings will be on May 18th.
Aviva share price forecast
The daily chart shows that the Aviva stock price has been in a bullish trend lately. Along the way, the stock has found substantial resistance that is shown in red. A closer look shows that it has formed what looks like an inverted head and shoulders pattern. In most cases, this pattern is usually a bullish signal. It remains above the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved to the neutral level of 50.
Therefore, there is a likelihood that the shares will bounce back in the near term. As a result, the stock will likely resume the bullish trend as bulls target the key resistance level at 500p. However, the stock will likely show some volatility in the near term.