UPDATE: FTSE 100 insurer Admiral Group has just announced a staggering forecast yield of 7.5%, positioning itself as a top contender for income-seeking investors. This comes on the heels of record profits and significant dividend increases, making Admiral one of the most lucrative stocks in the index.
The latest results, revealed on March 6, 2025, showcased a profit before tax surge of 90% year-on-year, reaching £839 million. Admiral’s total dividend payout for 2024 was 192p, equating to a remarkable 6.2% yield based on its current share price of £30.89. This yield is more than double the FTSE 100 average and surpasses the UK’s risk-free rate of 4.5%.
What’s driving this momentum? Admiral has recently lifted its interim dividend by 67%, increasing it from 51.3p to 85.9p. In addition, a special dividend has been raised by 48%, from 19.7p to 29.1p. These substantial increases reflect Admiral’s robust financial health and commitment to returning cash to shareholders.
Despite challenges within the UK motor insurance market, Admiral’s resilience shines through. The insurer’s customer base expanded by 14% to 11.1 million, and turnover rose by 28% to £6.15 billion, largely driven by a 37% increase in insurance revenue. Even as average car insurance prices fell, Admiral’s operational consistency and strategic positioning have proven advantageous.
As for passive income potential, an investment of £10,000 in Admiral could yield approximately £11,121 in dividends at the projected 7.5% rate, factoring in reinvestment through dividend compounding. Over a span of 30 years, this investment could appreciate to a total value of £94,215, providing annual dividends of around £7,066.
Market experts are taking note. Admiral shares are currently viewed as significantly undervalued, with estimates suggesting they could rise by 49% toward a fair value of £60.57. This potential for capital gains, combined with the impressive dividend yield, has many investors eager to act.
Investing expert Mark Rogers, who has a long-standing reputation in the financial community, highlights Admiral as a standout stock in his recommendations. With its strong growth trajectory and high cash returns, Admiral Group is rapidly becoming a must-watch for both new and seasoned investors.
Stay tuned for more updates as Admiral continues to reshape its position in the FTSE 100 and attract attention from income-focused investors worldwide.
