URGENT UPDATE: Investors are poised to generate an impressive £17,497 in annual passive income from 2,958 shares of the 8%-yielding Phoenix Group Holdings (LSE: PHNX). This lucrative opportunity has emerged as Phoenix continues to showcase strong earnings growth despite recent fluctuations in its stock price.
Phoenix Group has witnessed a remarkable 42% surge in share price since January, increasing from £4.75 to its current levels. While its dividend yield dipped slightly due to this price rise, it still stands at a robust 8%, significantly surpassing the FTSE 100 average of 3.3% and the 10-year UK government bond yield of 4.4%.
Analysts project that Phoenix Group’s earnings will grow by an astonishing 106% annually until the end of 2027. This growth trajectory is expected to drive dividends up to 55.5p this year, followed by 57.1p in 2025 and 59p by 2027, resulting in yields of 8.2%, 8.4%, and 8.7% respectively.
Phoenix Group, the UK’s largest long-term savings and retirement organization with over 12 million customers, will rebrand to the more recognizable Standard Life in March 2024. This strategic move aims to enhance visibility and market presence as it continues to deliver strong financial results.
In its latest H1 2025 report, Phoenix Group announced a 25% increase in IFRS adjusted operating profit, reaching £451 million. Operating cash generation also rose by 9%, while the interim dividend was boosted by 3% to 27.35p. The firm is on track to meet its target of £5.1 billion in total cash generation for 2024-2026, with £2.6 billion already achieved.
Investors looking to capitalize on this opportunity could purchase approximately 2,958 shares with an initial investment of £20,000. Assuming an average yield of 8% and reinvesting dividends—a common strategy known as dividend compounding—returns could soar to £24,393 in dividends after 10 years and up to £198,715 after 30 years, resulting in a total portfolio value of £218,715.
Given Phoenix Group’s solid fundamentals and positive growth outlook, many investors are eager to buy in. With the combination of a high dividend yield and strong earnings potential, this stock is quickly becoming a must-watch for dividend investors.
Stay tuned as more updates unfold regarding Phoenix Group and its evolving market position.
