Investors more optimistic on Aviva (Lon: Av.) This week, 10%as a shares, despite the profit down last year

The easiest way to invest in shares is to buy stock market exchange funds. However, investors can increase returns by selecting market -based companies to own shares. Aviva PLC (Lon: Av.) The share price is 23% higher than a year ago, much better than the market yield of around 11% (without dividends) in the same period. If this can maintain the output in the long term, investors will do very well! The long -term returns were not so good, although the share price was only 2.5% higher than three years ago.

The past week has proven to be lucrative for Aviva investors. So let's see if the basics have promoted the company's one -year performance.

Take a look at our latest analysis for Aviva

It cannot be denied that the markets are sometimes efficient, but prices do not always reflect the underlying business performance. By comparing the profits per share (EPS) and the changes in stocks over time, we can get a feeling for how investors have turned into a company over time.

Last year Aviva actually recorded 37%.

This means that it is unlikely that the market will judge the company on the basis of profit growth. When EPS sinks but the share price has increased, this often means that the market takes other factors into account.

We find that the latest dividend payment is higher than the payment a year ago, which may have supported the share price. It could be that the company reaches maturity and buy dividend investors for the return and increase the price into the process. In addition, sales growth of 4.1% probably also encouraged buyers.

The following graphic shows how the result and income have changed over time (present the exact values ​​by clicking on the picture).

We like that insiders have bought stocks in the past twelve months. Nevertheless, most people consider profit and sales growth trends as a more sensible guide for business. If you think about buying or selling Aviva shares, you should check this free Report shows analyst forecasts.

It is important to take into account the entire shareholder return and the share return for a certain share. The TSR contains the value of spin-offs or reduced capital increases as well as all dividends based on the assumption that the dividends are reinvested. It is fair to say that the TSR offers a more complete picture for stocks that pay a dividend. As it happens, Avivas TSR was 31%in the past 1 year, which exceeds the previously mentioned share return. This is largely a result of his dividend payments!

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