Abrdn Stocks RISE from the ASHES! Is This the COMEBACK We’ve All Been Waiting For?
When we last checked in on the notorious abrdn (LSE: ABDN), it felt like we were witnessing a financial funeral on December 20. This FTSE 250 investment manager has been a major flop since its disastrous 2017 merger, leaving investors in shock and despair. But WAIT! What’s this? Abrdn’s shares are making a shocking comeback, soaring 10% in January! Is this the spark of a much-needed recovery, or just another mirage?
Financial PHOENIX or Just a FLICKER?
Let’s keep our excitement in check, folks! Despite the recent spike, Abrdn’s stock is still a wreck — down 9% over the last year and a whopping 50% over five years. However, after the past month, some investors are dusting off their party hats!
FTSE Financials CHARGING BACK!
There’s a palpable buzz in the air as UK financial stocks roar back! With falling inflation and interest rates on the horizon, what a time to be alive! Other major players like Legal & General Group and M&G are also climbing — both 6% in January!
But wait — Abrdn’s revival isn’t just about the sector shift! Investors are buzzing after the company dropped some positive Q4 results on January 15. Finally, we’re seeing some glimmers of hope!
Stunning Numbers from the Ashes
Brace yourselves! Assets under management surged 3% in 2024, hitting a jaw-dropping £511 billion! The Investments division, long cursed with painful outflows, shocked everyone by posting a net £500 million inflow in the final quarter!
Even more jaw-dropping? The Institutional & Retail Wealth segment made a miraculous turnaround with a net inflow of £300 million for the year, rebounding from a gut-wrenching £17.9 billion net outflow in 2023!
And let’s not overlook Interactive Investor – the gem in Abrdn’s crown – boasting an 8% rise in customer numbers clocking in at 439,000. Net inflows skyrocketed to nearly £5.7 billion, proving it’s not just smoke and mirrors!
The Battle Rages On
But let’s not break out the champagne just yet! Abrdn still has major battles ahead. The adviser platform is still reeling from £3.9 billion in outflows last year, while equity outflows particularly in Asia and emerging markets are causing serious headaches.
DIVIDEND DRAMA Unfolds!
Now, the piece de resistance — the dividend! A staggering 9.4% yield propels it to the top of the FTSE 250! But here’s the kicker: Abrdn has kept its payout frozen at 14.6p per share for four grueling years. Earnings barely cover shareholders’ payouts!
The board is desperate to avoid a cut, especially with signs of recovery peeking through, but nothing is guaranteed! They claim their cost transformation plan will forge a “solid base from which to grow.”
Could 2025 be the soft landing with a string of interest rate cuts? Rumors have it that the Bank of England may drop base rates to 4.75% on February 6. If that happens, Abrdn’s tantalizingly high yield could become even more tantalizing to cash-strapped investors!
Are You Ready for an EXPLOSIVE Comeback?
As the thrill of DeepSeek’s AI breakthrough shakes up US tech giants, investors are suddenly eyeing FTSE dividend payers again! Who could blame them? Things are lifting, but we’ve seen this drama unfold before with Abrdn. Personally, I’m holding onto Legal & General and M&G for now. But one thing is for sure—Abdrn’s not going down without a fight!
