Why Hanover Insurance Group THG is a Top Dividend Stock for Your Portfolio March 11, 2025

Over the weekend, he shared clip from a Tesla fan account of the prototype for the Cybercab, a two-seater robotaxi the company will allegedly be making by 2026. Of the 12 analysts covering the stock tracked by Visible Alpha, 10 Indices Trading Strategies have “buy” or equivalent ratings, with two giving the stock a “hold” rating. Their consensus price target near $124 would suggest over 20% upside from Thursday’s intraday level. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

But if a restructuring programme was implemented, I think it could help lift investor sentiment. It therefore appears to me that the company’s a long way off from being profitable at a pre-tax level. If I’m correct and EBITDA is £117m, the company’s pre-tax loss for FY23 will be £106m. To keep things simple, I’m going to assume all three will be unchanged during FY23, at a combined £259m. To answer this, it’s necessary to delve a little deeper into the company’s financial statements.

  • The stock has seen a price change of 5.74% since the start of the year.
  • However, BP presents a mixed investment case in 2025, with its strategic reset offering both opportunities and challenges.
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  • UBS analysts raised their price target to $130 from $125 on Monday, pointing to an “improved pricing outlook” for Micron’s DRAM and NAND memory chips.
  • Its exposure to higher European taxes and stricter regulations may limit its ability to close the valuation gap.
  • Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits.

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  • During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle.
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  • Proposal to ‘demerge’ group’s Ingenuity e-commerce division needs far more clarity to convince stock market Matthew Moulding has muttered about spin-offs at THG almost from the moment he brought the L…
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  • While some focus on the price increase as a good sign of demand, it’s based on a misunderstanding of Tesla’s market in China.

The US Energy Information Administration predicts average oil prices of $74 in 2025 and $66 in 2026. This is a little lower than we’ve seen in recent years and could pressure BP’s forecasts. Inevitably, lower oil prices push stocks in the energy sector downwards. The BP share price is up from its nadir, but the volatility’s arguably making it hard to invest.

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The Manchester-based business said it was in talks to demerge Ingenuity, which would leave it with its two consumer divisions, beauty and nutrition. Some analysts are worried a drop in the stock market could trigger a further clampdown in spending, especially among higher income households. “If the White House remained committed to its policies even in the face of much worse data, recession risk would rise further,” the firm’s analysts warned. He has hit products from America’s three biggest trade partners with the new duties, and threatened them more widely in moves that analysts believe will increase prices and curb growth. Musk posted, for example, a forex moving average TikTok of a man showing off the design and features of a Tesla Model Y. Before that, he amplified pro-Tesla comments from anti-LGBTQ+ activist Robby Starbuck and MAGA conspiracy theorist Laura Loomer.

Therefore, Tesla planned limited production of the new Long Range AWD based on the historical mix, and it got slightly more orders, resulting in a new order delivery timeline of 6 to 10 weeks. Meanwhile, the New York Fed’s reading on manufacturing activity in New York state showed a sharp pullback in March, with the headline business conditions index falling to -20 from a reading of 5.7 in February. Analyst price targets for Tesla, compiled by Yahoo Finance, currently range between $120 and $550, with an average of $340.25. While cheaper than US majors like Exxon Mobil and Chevron, it trades in line with European peers such as Shell. Its exposure to higher European taxes and stricter regulations may limit its ability to close the valuation gap.

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Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends.

Hanover Insurance Group has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 6.96%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company’s annual earnings per share that it pays out as a dividend. This means it paid out 27% of its trailing 12-month EPS as dividend.

THG: will the Ingenuity demerger prove a good strategic move?

This compares to the Insurance – Property and Casualty industry’s yield of 0.51% and the S&P 500’s yield of 1.58%. Proposal to ‘demerge’ group’s Ingenuity e-commerce division needs far more clarity to convince stock market Matthew Moulding has muttered about spin-offs at THG almost from the moment he brought the L… The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. It should only be considered an indication and not a recommendation.

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A dividend is the distribution of a company’s earnings paid out to shareholders; it’s often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. We don’t offer personal advice so if you’re unsure, please seek independent advice.

Price to Earnings Growth Ratio

UBS analysts raised their price target to $130 from $125 on Monday, pointing to an “improved pricing outlook” for Micron’s DRAM and NAND memory chips. For the full year, UBS lifted its revenue projection to $35.48 billion, up from $34.52 billion previously. Before drawing any conclusions, let’s consider previous recessions. The next-most recent was the Great Recession, spanning 2007 through 2009, and it was linked to the subprime mortgage crisis and a general housing market collapse. Tesla appears to have tailored the redesign to the Chinese market, which might work in North America, but in China, Chinese buyers might as well buy the cheaper and better-equipped Chinese vehicles that Tesla is trying to copy. More electric vehicles are also being announced in the market every week – putting more pressure on Tesla in the already most competitive EV market in the world.

The Securities and Exchange Commission (SEC) is drafting regulations to control the behaviour of major shareholders in the market, aiming to prevent incidents similar to the one involving Dr Boon Vana… Trades priced above the mid-price at the time the trade is placed are labelled as a buy; those priced below the mid-price are sells; and those priced close to the mid-price or declared late are labelled ‘N/A’. Short term past performance of less than one year is a particularly unreliable indicator. Short-term past performance of less than one year is a particularly unreliable indicator. Company listing information, company shareholders as well as key dates and contact details. Connect with traders and investors in our Follow Feed community.

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. One of the company’s biggest shareholders agrees, claiming that the company would be worth more if it was split into its operating divisions – beauty, nutrition and its e-commerce platform. Our website offers information about investing and saving, but not personal advice. If you’re not sure which investments are right for you, please request advice, for example from our financial advisers.

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During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that THG is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy). 3 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for THG in the last twelve months. There is currently 1 sell rating, 1 hold rating and 1 buy rating for the stock. The consensus among Wall Street research analysts is that investors should “hold” THG shares.

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation. No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. If you require any personal advice or recommendations, please speak to an independent qualified financial adviser. Big, established firms that have more secure profits are often seen as the best dividend options, but it’s fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend.

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