Aviva is a major insurance, asset management, and pension company with its headquarters in the UK. Listed on the London Stock Exchange, the firm has a current market capitalization of over £11 billion.
If you want to buy Aviva shares today, you will need to find a reliable stock broker that is regulated by the FCA. There are many platforms to choose from, so you’ll also need to consider metrics surrounding payment methods, fees, commissions, and customer support.
In this guide, we show you how to buy Aviva shares in the UK. We also discuss the best UK brokers to buy the shares from, as well as some background information on what the future holds for Aviva.
- 1 Step 1: Find a UK Stock Broker to Buy Aviva Shares
- 2 Step 2: Research Aviva Shares UK
- 3 Aviva Share Price History
- 4 Aviva Shares Dividend Information
- 5 Should I Buy Aviva Shares Today?
- 6 Aviva Shares Login
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Trade or Buy Aviva Shares
- 9 Aviva Shares Buy or Sell?
- 10 The Verdict?
- 11 eToro – Buy Aviva Shares With Zero Commission
- 12 FAQs
If you want to buy Aviva shares today, your first port of call will be to find a suitable UK stock broker. There are hundreds of platforms to choose from, so you’ll need to do some digging to ensure the provider is right for you.
Taking into account just how time-consuming this can be, below we discuss some of the best online platforms to buy Aviva shares from in 2020.
1. eToro – Buy Aviva Shares With Zero Commission
eToro is going to be your best option when it comes to buying Aviva shares online. This is because the platform is suited for investors of all experience levels. Whether you are a seasoned trader or buying shares for the first time – eToro is super-easy to use. You simply need to open an account, meet a $200 (about £160) minimum deposit, and decide how many Aviva shares you want to purchase.
One of the most appealing factors of using eToro is that the broker does not charge any fees to buy Aviva shares. In fact, there are no account opening or monthly maintenance fees either. You will have access to over 800+ companies in total, including many of the best shares to buy, hundreds of FTSE 100 shares, and access to over 16 international markets. This includes stock exchanges listed in the US, Spain, Sweden, Saudi Arabia, Hong Kong, and Germany.
The platform is also popular for the ease in which you can deposit and withdraw funds. This is because you can choose from a debit card, credit card, e-wallet, or bank account. All account balances are denominated in US dollars at eToro, as this gives you unfettered access to both UK and foreign markets. You will, however, incur a small 0.5% currency conversion fee when you make a deposit. Withdrawals will cost you just $5 per transaction.
When it comes to account features, the one that stands out for us is the eToro Copy Trading phenomenon. Put simply, this allows you to copy the share portfolio of an experienced trader. Your portfolio will be updated in real-time whenever the trader buys or sells shares – proportionate to the amount you invest. Finally, it is important to note that eToro has an excellent reputation in the UK investment space. It is licensed by the FCA, and your funds are protected by the FSCS scheme.
75% of retail investor accounts lose money when trading CFDs with this provider.
2. Plus500 – Commission-Free Stock CFD Trading Platform
If you are more interested in placing sophisticated trades on Aviva shares, it might be worth considering Plus500. This is because the online stock trading platform specializes in CFDs (contracts-for-differences). In Layman’s terms, this means that the CFD instrument will track the real-world price of Aviva shares, meaning that you can trade them without taking direct ownership.
This can be beneficial for a number of reasons. For example, Plus500 allows you to apply leverage of 1:5 when trading Aviva share CFDs. This means that you can trade with five times more than you have in your account. Plus500 also gives you the option of going long and short. The former means you are speculating on the price increasing, while the latter means that you are looking to profit when the value of the shares goes down.
Regardless of which way you think the markets will go, Plus500 allows you to trade on a commission-free basis. This is the case across thousands of financial instruments hosted at the platform. In the shares department, this covers over 2,000 stock CFDs. If you’re looking to access other asset classes, Plus500 also hosts commodities, indices, cryptocurrencies, forex, and bonds – all in the form of CFDs. You can trade all of these assets online or via the Plus500 mobile app.
In terms of the specifics, Plus500 allows you to open an account in minutes. Upon providing your personal information and uploading some ID – you will need to meet a £100 minimum deposit. You can do this with a debit card, credit card, bank account, or Paypal. There are no fees to deposit or withdraw funds, but a 0.5% currency conversion charge comes into play when accessing non-GBP markets. Finally, Plus500UK Ltd is authorized & regulated by the FCA (#509909).
- Commission-free CFD platform – only pay the spread
- Thousands of financial instruments across heaps of markets
- Retail clients can trade stock CFDs with leverage of up to 1:5
- You can short-sell a stock CFD if you think its value will go down
- Takes just minutes to open an account and deposit funds
- CFDs only
- More suitable for experienced traders
80.5% of retail investors lose money trading CFDs at this site
Whether you’re looking to invest in Aviva or other pension and insurance providers such as Legal and General, it’s always important to do your research. In doing so, you can be 100% sure that you understand both the risks and rewards of making an investment.
To point you in the right direction, below we discuss some of the most pertinent points to consider before you buy Aviva shares.
A good starting point when researching a company is to look at the firm’s historical share price. For this, we would need to go right back to the mid-1990s. Crucially, you would have paid 500p per Aviva share in 1995. Stockholders then enjoyed a fruitful three years, with the shares peaking at 1,280p in 1998. This represented a huge upswing of 156%.
However, Aviva shares are now worth just a fraction of their prior peaks. In fact, at the time of writing in August 2020, you will need to pay just 288p to buy an Aviva share. This means that the stocks are worth 77% less than they were in 1998. With that being said, it is much more pertinent to look at the recent Aviva share price history to determine whether or not the stocks are worth investing in.
In the 12 months prior to writing this article, Aviva shares were priced at 353p. They then went on somewhat of an upward trajectory, hitting 52-week highs of 439p along the way. But, and much like the rest of the insurance industry, Aviva shares fell off of a cliff in response to the COV-19 pandemic. In the space of just one month, the shares went from 404p to 205p.
This translates into losses of almost 50%. On the flip side, those that were shrewd enough to catch the bottom of the downward trend are now looking at gains of 40%. The good news is that there is still a lot of upside potential in the making. This is because Aviva shares would need to increase by a further 40% to get back to pre-COV-19 levels. In order for the firm to achieve this, it must ensure that it keeps its balance sheet in good health.
Management at Aviva has been sending out mixed messages on its dividend policy in recent months. On the one hand, the firm announced that it would be resuming its dividend policy – with a planned interim payment of 6p per share. This was very welcome news for stockholders, with the announcement resulting in a share price increase of just under 5% by the close of trading.
On the other hand, management has since hinted at the possibility of a dividend cut. Whether or not a cut comes to fruition will ultimately depend on how the firm deals with the economic fallout of the pandemic.
Still wondering whether Aviva shares are worth buying? In this section of the research phase, we are going to discuss where the shares are likely to move in the coming months and years.
Promising Recovery From 52-Week Lows
As we covered above, Aviva shares hit 52-week lows of 205p in March 2020. This represented a 50% drop in the space of just one month. The good news, however, is that the shares have since recovered by 40% to 288p. In order to determine how this recovery compares to the wider markets, we need to look at the FTSE 100 over the same period of time.
So, the FTSE 100 dropped from approximately 7,436 points to 4,999 points during the same period that saw Aviva lose 50% in value. This amounts to a drop of 32%. In this sense, the downfall experienced by Aviva was much worse than the wider markets. With that being said, the FTSE 100 has increased by just 22% since its 52-week lows, while Aviva has recovered by 40%.
Shares Might Still be Undervalued
Although you might have missed the 40% bounceback discussed above, there is still a long way for Aviva shares to go. After all, the Aviva share price was just over 404p before the pandemic-related crash come into force.
As such, this is a short-term target that is more than feasible. In reaching it, you would be looking at gains of over 40% based on current prices.
When attempting to assess the viability of a stock investment, it is crucial to look at the firm’s most recent earnings report. In the case of Aviva, the company recently published its half-year results. In terms of the positives, profits in the firm’s UK Life division increase by 9%.
Although Aviva saw its solvency ration drop from 206%, at 195% this is still somewhat healthy. This takes its solvency capital to around the £12 billion-mark. In less positive news, Aviva’s General Insurance division saw its operating profits drop by just under 50%.
With that being said, much of this was due to a hike in claims as per the COV-19 pandemic. Operating profits in the International Life division also suffered. This stood at a decline of 7.9% in Asia and 6.4% in Mainland Europe.
Once you go through the process of buying Aviva shares, you can access information about your investment from the Aviva website. The firm has partnered with Computershare, which allows you to:
- View the current value of your Aviva share portfolio
- Update your bank details for the purpose of dividends
- Create a dividend reinvestment plan
- Amend your home address
- Decide how you wish to receive information sent to shareholders
With that being said, there is no requirement to use the Aviva shares login system when using an FCA-broker. This is because everything is executed on your behalf by the platform that you buy the shares from. For example, your dividends will be paid into your brokerage account, you can change your personal information at any given time and easily reinvest your dividend payments.
Step 3: Open an Account and Deposit Funds
If you have spent sufficient time researching the viability of Aviva shares as an investment and you wish to proceed with your purchase, we are now going to outline the steps required. The guidelines discussed below are based on FCA-broker eToro – which offers one of the best share dealing accounts in the UK and allows you to instantly buy Aviva shares without paying any commission.
Once you land on the eToro website, elect to open an account. The broker will then ask you to fill out an application form, which will collect the following personal information from you:
- Full name
- Date of birth
- Home address
- National insurance number
- Contact details
- Username and password
Make sure you enter the information correctly, as you will be required to verify it in the next step. eToro will now ask you to upload a passport or driver’s license and a recent utility bill or bank account statement
While the documents are being verified by eToro (which normally takes no more than a few minutes), you can proceed to make a deposit. You will need to meet a $200 minimum (about £160), and all deposits come with a 0.5% conversion fee.
Support payment methods include debit card, credit card, Paypal, Skrill, Neteller, and UK bank transfer.
You are now ready to buy Aviva shares. First, you will need to enter ‘Aviva’ shares into the search box at the top of the page. Much like the image below, click on the result that pops up.
Then click on the ‘Trade’ button.
You will now see an order box. This gives you the option of buying Aviva shares in the traditional sense, or trading them via CFDs. If it’s the former that you are looking to achieve, you simply need to enter the amount that you wish to invest in stocks in US dollars. Then, click on the ‘Open Trade’ button to complete your investment.
If you want to trade Aviva stocks, you have the option of placing a buy or sell order. You also have the option of applying leverage of up to 1:5, which will amplify your trade size by 5x.
Although Aviva shares are worth just a fraction of their prior peaks, the firm still offers an element of growth potential. But, this sentiment is based on current prices. In other words, at around 250p-300p-, the shares might be undervalued.
The main attraction here is that Aviva shares were comfortably hovering about the 400p-mark before the pandemic came to fruition. This offers a juicy risk vs reward ratio. The firm also has a somewhat healthy solvency ratio at 195%, albeit, this is down from 206%.
If you like the sound of Aviva and wish to add its shares to your stock portfolio, the process couldn’t be easier. When using a top-rated FCA broker like eToro, you can buy Aviva shares today without paying any commission.
All you need to do is open an account and instantly deposit funds with a UK debit/credit card or e-wallet. Best of all, you can invest from just $50 (about £40) into Aviva, so you can still get a look in if you are on a budget.
Simply click the link below to get started!
75% of retail investor accounts lose money when trading CFDs with this provider.
What does Aviva do?
Aviva's core business model centers on insurance. This covers everything from health, car, and home insurance - both to the consumer and business sectors. Additionally, Aviva is also involved in the asset management and pension arena.
What stock exchange are Aviva shares listed on?
Aviva shares are listed on the UK's primary exchange - the London Stock Exchange. It is also a FTSE 100 constituent.
Do Aviva shares pay dividends?
Although Aviva had previously suspended its dividend policy, management recently made the decision to resume it. It is planning to pay an interim dividend of 6p per share.
What is the minimum number of Aviva shares you can buy?
This depends on your choice of share dealing platform. If you want to start off with small stakes, eToro allows you to buy just $50 (about £40) worth of Aviva shares.
Can you short Aviva shares?
If you think that Aviva shares are overvalued, you can short the company via CFDs.