M&G Gains 69% in 3 Years as Investor Backs 5.7% Yield for SIPP Income
Updated
Updated · twelfthmagpie.com · Aug 3
M&G Gains 69% in 3 Years as Investor Backs 5.7% Yield for SIPP Income
1 articles · Updated · twelfthmagpie.com · Aug 3
Summary
M&G is being pitched as a SIPP holding after its shares rose 69% over three years, with reinvested dividends reportedly doubling the investor’s money.
The case rests on income as much as growth: M&G’s trailing dividend yield is 5.7%, and management plans to raise shareholder payouts by 2% a year.
A 6% yield would require a £209,117 pension pot to generate £12,547 a year without touching capital, while £250 a month invested for 30 years at 8% growth could reach £367,038.
SIPP tax relief strengthens that argument because every £100 contribution costs a basic-rate taxpayer £80 and a higher-rate taxpayer £60, with 25% of the pot withdrawable tax-free up to £268,275.
Risks remain: M&G trades on a trailing P/E of 28 versus roughly 16 for the FTSE 100, and a market downturn or pressure from low-cost passive funds could hurt inflows, assets and fees.