Aviva (LSE: AV) shares have achieved properly in recent times, and it’s killing me. I need to purchase them however I can’t!

The FTSE 100 insurer and asset supervisor has delivered capital development and dividend revenue, rewarding long-term traders who had the endurance to take a seat tight when the inventory was caught within the sluggish lane.

With high-yielding UK dividend shares like this, just a few years of disappointing efficiency isn’t the tip of the world. So long as the board can afford to take care of shareholder payouts, and traders steadily reinvest these dividends, wealth quietly builds within the background. That greater stake pays off handsomely when the share price lastly begins to maneuver.

Can this inventory preserve climbing?

And transfer it has. Over 5 years, the Aviva share price has climbed virtually 150%, though that’s flattered by the post-pandemic lows of 2020. It’s up 18% during the last 12 months, and held moderately regular throughout this 12 months’s inventory market volatility.

There’s a rising case for saying that FTSE 100 dividend revenue shares are coming again into style. With rate of interest cuts more and more possible as central banks attempt to cushion the slowdown from Trump’s tariff battle, the relative attraction of reliable dividends may rise. 

Shares like Aviva, that are much less uncovered to direct commerce limitations, may gain advantage, though market volatility may nonetheless knock the worth of property they maintain.

Aviva’s full-year outcomes, printed on 27 February, confirmed working revenue climbed 20% to £1.77bn, whereas property beneath administration grew by 17% to £198bn. Nonetheless, that was earlier than Trump shocked the world along with his tariff technique. Any harm achieved will likely be higher mirrored within the subsequent set of numbers.

In February, the board hiked the dividend a wholesome 7% to 35.7p per share, in an indication of confidence. Dividends are by no means assured, though brokers forecast the yield will hit 6.97% this 12 months and seven.49% in 2026. That’s a staggering charge of revenue.

Markets are additionally optimistic about Aviva’s acquisition of normal insurer Direct Line.

The 12 analysts who’ve printed one-year targets for Aviva see a median determine of 595.4p. If that’s proper, it could signify a achieve of just about 9% from in the present day’s 547p.

Dividend revenue and development

Throw within the dividend yield, and the potential complete return climbs north of 15%. Not dangerous, if it performs out. Nonetheless, forecasts are merely finest guesses, and given in the present day’s uncertainty, much less dependable than ever.

Even sturdy companies carry dangers. Aviva’s fortunes are intently tied to financial circumstances. An financial slowdown may hit demand for insurance coverage and financial savings merchandise, whereas funding returns may undergo. Competitors stays fierce too. Sustaining margins and market share received’t be straightforward.

Aviva’s ahead price-to-earnings ratio, at simply over 22, is excessive however hardly outrageous given the corporate’s efficiency and prospects.

So why can’t I purchase it? Sadly, I’ve made a rookie mistake. I already maintain sizeable stakes in Authorized & Common Group, M&G and Phoenix Group Holdings. So I’m closely uncovered to FTSE 100 financials already. They’ve all achieved moderately properly and I’m in no hurry to promote.

If I used to be ranging from scratch, I’d purchase Aviva first. It’s essentially the most convincing performer. As I’m not, I’ll stick with my weapons and hope Authorized & Common, M&G and Phoenix play catch up. They’ve obtained a good solution to go.