UPDATE: FTSE 100 insurer Admiral Group (LSE: ADM) has just announced a stunning forecast yield of 7.5%, positioning itself as a top choice for income-focused investors. This revelation comes on the heels of record profits and substantial dividend increases, making it clear why Admiral is a standout in the current market.
The latest results released on March 6, 2025, show Admiral’s commitment to high cash returns, with a total dividend of 192p for 2024, translating to a remarkable 6.2% yield at its current share price of £30.89. This yield is not only double the FTSE 100 average but also exceeds the risk-free rate of 4.5% from the 10-year Gilt.
Investors should be excited about the 67% increase in the interim dividend from 51.3p to 85.9p, alongside a special dividend hike of 48% from 19.7p to 29.1p, signaling robust payout momentum. Consensus forecasts suggest a 7.1% yield for this year and next, with projections soaring to 7.5% by 2027.
But what does this mean for potential investors? A £10,000 investment in Admiral at the projected rate could yield £11,121 in dividends, assuming reinvestment. Over the next three decades, this could grow to an astonishing £84,215, bringing the total value of the shares to £94,215 by then, generating a yearly income of £7,066.
Despite challenges in the UK motor insurance market, Admiral continues to demonstrate resilience. Profit before tax surged by 90% year-on-year to £839 million, with earnings per share nearly doubling to 216.6p. The company also reported a 28% increase in turnover, propelled by a 37% rise in insurance revenue, showcasing the strength of its business model amid competitive pressures.
Mark Rogers, a noted investment expert, emphasizes the importance of Admiral’s high dividend yield, signaling potential for capital gains as the stock is currently viewed as 49% undervalued relative to its fair value of £60.57. This presents a compelling case for investors to consider adding to their holdings without delay.
This urgent update underscores Admiral’s exceptional financial performance and the attractive dividend forecast that could reshape your investment strategy. With dividends projected to climb, now is the time to act and consider how Admiral can fit into your portfolio.
Stay tuned for more updates as this story develops, and don’t miss the opportunity to invest in one of the FTSE’s most lucrative dividend stocks.
