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Aviva plc (LSE:AV), a leading insurance company, has announced its interim dividend for the financial year ending 31 December 2024, reflecting its ongoing commitment to rewarding shareholders. Alongside this, the company has also declared a dividend for its 8 3/8% Cumulative Irredeemable Preference Shares, underscoring the financial stability and reliability of its operations.
Interim Dividend for Ordinary Shares
Aviva plc has declared an interim dividend of 11.9 pence per share on its Ordinary Shares of 32 17/19 pence each. This dividend will be distributed to shareholders on 17 October 2024, with the record date set for 6 September 2024. The interim dividend reflects Aviva’s strong financial performance and commitment to delivering consistent shareholder value.
Shareholders who are part of the Dividend Reinvestment Plan (DRIP) should note that the last election date to participate in the DRIP for this interim dividend is 26 September 2024. This plan allows shareholders to reinvest their dividends into additional shares of the company, providing an opportunity for further capital growth.
Holders of Aviva American Depository Receipts (ADRs) will receive their dividend payments approximately four business days after the payment to Ordinary shareholders. This aligns with the company’s efforts to ensure that all shareholders, regardless of location, benefit from its dividend policy.
However, the payment of this dividend is conditional. Aviva’s Board of Directors retains the discretion to cancel the dividend at any time before the payment date, should circumstances necessitate such a decision. This provision is standard practice and ensures that the company maintains flexibility in its financial management.
Dividend for Cumulative Irredeemable Preference Shares
In addition to the interim dividend for Ordinary Shares, Aviva plc has also declared a dividend on its 8 3/8% Cumulative Irredeemable Preference Shares of £1. Shareholders holding these Preference Shares will receive a dividend of 4.1875 pence per share for the six-month period ending 30 September 2024.
The payment date for this dividend is 30 September 2024, with the record date being the same as that for the Ordinary Shares, 6 September 2024. This dividend announcement is a reflection of Aviva’s commitment to maintaining its obligations to Preference Shareholders, who enjoy the benefit of fixed dividend payments, irrespective of the company’s earnings performance.
Cumulative Irredeemable Preference Shares are a unique financial instrument that ensures holders receive dividend payments before any dividends can be paid to Ordinary Shareholders. Even if the company faces financial difficulties and cannot pay dividends in a particular period, the cumulative feature means that any unpaid dividends must be paid in full before any dividends can be distributed to Ordinary Shareholders in the future.
Strategic Financial Management
Aviva’s announcement of these dividends underscores the company’s robust financial health and strategic approach to capital management. By continuing to deliver returns to both Ordinary and Preference Shareholders, Aviva demonstrates its ability to generate consistent cash flows and maintain financial resilience.
