M&G PLC

M&G's performance benefits from cost improvements but faces challenges from reduced returns on excess assets due to rate changes. AUM growth and cost control have lifted operating profits in AM, but the insurance business model is less attractive in a rate-cutting environment. CSM release rates (amortisation) is down as "persistency" is observed, in other words pensioners living longer than expected in their insured group.» Mehr auf seekingalpha.com

M&G benefits in several ways from higher rates due to its previously run-off insurance businesses. The company has a generous dividend policy, that should be used as a measure of their underlying profit yield, which we think can be enduringly supported and grow a little. While the underlying AM business is nothing to write home about, the exposure to higher rates, which we expect to remain structurally higher over the next decade, is a plus.» Mehr auf seekingalpha.com

Dividend yield is actually a fairly reliable indicator of value and future returns. There is an elevated risk of dividend cuts and suspensions when yields are so high, but in many cases, that seems unlikely. The UK does offer rich pickings to dividend investors.» Mehr auf seekingalpha.com