When Aberdeen renamed itself to abrdn (LSE: ABDN) 4 years in the past, mockery ensued. And the share price has had a poor time since then. The five-letter title apparently represented a “modern, agile, digitally enabled brand.”

Now, in a transfer that may absolutely gladden the hearts of vowel-loving traders all over the place, it’s goodbye abrdn and welcome aberdeen group. I nonetheless don’t know what they’ve bought in opposition to capital letters.

It’s apparently all about eradicating distractions. And the share price bought off to a direct distraction-free begin with a 12% morning spike on 2024 outcomes launched Tuesday (4 March).

First revenue development in three years

CEO Jason Windsor opened the outcomes announcement with: “The group grew profit in 2024 for the first time in three years, with each business increasing its contribution.”

Adjusted working earnings dipped a bit, by 6%. However it fed by to a 2% rise in adjusted working revenue with internet capital technology up 34%. Belongings beneath administration rose 3% to achieve £511bn. Optimistic funding influx appears particularly good to me within the present local weather of investor concern.

Down on the backside line, adjusted earnings per share (EPS) grew 8% to 15p. However what in regards to the factor we’ve all been ready for, dividend information?

The CEO stated: “We are able to maintain the historic dividend per share from materially higher, and sustainable capital generation.” That’s 14.6p per share once more, for a 9% dividend yield on the day past’s shut. In my thoughts it should absolutely be the most important contributor to the share price soar.

FTSE 250 passive earnings

Among the high FTSE 250 forecast dividend yields are gorgeous proper now, some nicely over 10%. Amazingly, aberdeen’s 9% doesn’t even make the highest 10. However these outcomes have simply propelled it increased up my record of attainable buys for passive earnings.

The largest threat I noticed was an absence of earnings cowl for the dividend. The potential to pay dividends is a little more complicated than that for this type of funding firm. However falling income coupled with declining property beneath administration can result in dividend cuts.

The corporate was fashioned from the merger of Normal Life and Aberdeen Asset Administration in 2017. And it was virtually instantly hit by Lloyds Banking Group strolling away. Lloyds withdrew £109bn of property, seeing the brand new abrdn as a competitor for its personal insurance coverage merchandise.

It’s taken some time to show issues spherical. However now it appears prefer it’s occurring, my fears of a dividend minimize have receeded, although not fully.

Some convincing to do

I nonetheless suppose aberdeen has some option to go to totally reverse the unfavourable sentiment of the previous few years. This newest share price spike is welcome. However the shares are nonetheless down 45% because the excessive level of 2021.

And we’re undoubtedly not but into the clear when it comes to financial power and new days of booming funding. However I believe it might grow to be a very good time to think about aberdeen shares for long-term passive earnings.