I once sold a FTSE 100 growth stock, Prudential, just before the 2008 financial crisis and made a 70% profit. Today, its shares are at the lowest level since 2012, down 30.91% over the past year.
Prudential was seen as an exciting insurance stock with operations in Asia, but various issues in China have affected its performance. However, the business itself seems to be doing fine, with profits up and dividends on the rise.
The company plans to return $2bn to investors through a share buyback and aims for dividend growth in the coming years. Despite a low dividend yield compared to the FTSE 100 average, Prudential’s shares are trading at a lower earnings multiple.
While the company faces challenges, it also presents a potential recovery opportunity for investors. It is not solely reliant on China, with operations in other regions as well. It may be worth keeping an eye on for future investment opportunities.