The Aviva (LSE: AV.) share price has placed on a superb efficiency this yr to this point. In 2024, the inventory is up 11.9%. Which means within the final 12 months, Aviva has climbed 27.2%.

Which means it’s outperformed the FTSE 100 throughout each timescales. Whereas shopping for index trackers can provide a sensible and easy option to construct wealth over time, choosing particular person shares also can show to be extremely useful.

However with the inventory leaping this yr, wouldn’t it nonetheless make a shrewd addition to my portfolio? I’ve been preserving a really shut eye on the insurance coverage stalwart over the previous couple of months. With its share price gaining momentum, I reckon now could possibly be the time for me to strike. Let me clarify why.

Worth for cash

Firstly, I feel the Footsie constituent appears to be like like good worth for cash. It at the moment trades on a price-to-earnings (P/E) ratio of 10.1. That’s beneath the FTSE 100 common of 11. For an organization of Aviva’s high quality, I feel that’s a steal. Its ahead P/E is 10.5. Once more, I feel that appears like nice worth.

Dividend yield

Then there’s its dividend yield, which at the moment stands at 7%. I’m an investor who targets shares offering meaty passive revenue. Aviva’s payout is comfortably above the FTSE 100 common of three.6%. The truth is, it’s the fifth-highest yield on the index.

Dividends are by no means assured. That stated, I reckon we might see Aviva’s payout rise within the years to come back. I say that as a result of administration appears eager to maintain rewarding shareholders. Final yr, the enterprise upped its dividend by 8% to 33.4p per share. Its first-half outcomes this yr revealed that its interim dividend jumped 7% to 11.9p.

Wanting forward, its ahead yield for the upcoming yr is 7.1%. By 2026, some predict that might attain as excessive as 8.4%.

I’m additionally a fan of its share buyback programmes. The newest announcement got here in March, with it totalling £300m.

Streamlining

Except for that, there are different the reason why I’m bullish on Aviva. I’ve been particularly impressed with the turnaround the agency has made within the final couple of years. From a enterprise that was critiqued for being inflated with too many working divisions, Aviva is now making good headway with its streamlining course of.

This has sped up since CEO Amanda Blanc took over. Underneath her management, Aviva has offloaded struggling divisions and positioned higher deal with worthwhile areas. For the primary half of the yr, working revenue rose by 14% to £875m. That’s off the again of a powerful 2023.

The dangers

After all, the strikes it has made lately do include threat. Specializing in just some markets leaves the enterprise reliant on a handful of areas. Ought to they expertise a downturn, this might see the inventory endure.

Moreover, the insurance coverage business could be very aggressive. There’s the continued rising risk from smaller opponents akin to insurtechs.

I’d purchase right now

However at its present price, and with its thumping yield, I feel Aviva can be a savvy purchase for my portfolio. I’d fortunately purchase the inventory right now if I had the money.