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Experienced Investor

Stock of the Week: Prudential

Joanna Faith
Written By:
Joanna Faith

Ian Forrest, investment research analyst at The Share Centre, picks Prudential as stock of the week.

This week’s share of the week is British life insurance and financial services company Prudential amid the rumours that a Chinese financial services group is considering a bid for Prudential’s Asian business.

Interim results in August reported a 9% increase in operating profit to £2.4bn and once again the CEO highlighted that performance had again been led by Asia, where profits were up by 7%.

The demographics of many Asian regions, and the rise of the middle class, should provide a good growth story for Prudential for some time to come.

Overall capital solvency surplus rose to £14.4bn and the group raised its dividend by 8% to 15.67 pence and while the dividend yield is modest compared to its peers, this is set to grow over the years.

We continue to recommend Prudential as a low to medium risk long-term ‘buy’ for investors looking for a positive investment idea that spans a number of regions.