It is time to say goodbye to Abrdn, since the price of Aberdeen's shares

When Aberdeen renamed himself to Abrdn (LSE: Abdn) Four years ago, there was a mockery. And the price of the shares has had a bad time since then. The name of five letters apparently represented a “Modern, agile brand, digitally enabled. “

Now, in a movement that will surely rejoice the hearts of the vowel -love investors everywhere, it is goodbye and welcome Aberdeen Group. I still don't know what they have against capital letters.

Apparently it is about eliminating distractions. And the price of the shares had an immediate start without distractions with a 12% morning peak in the 2024 results published on Tuesday (March 4).

First growth in three years

The Jason Windsor CEO opened the announcement of results with: “The group increased profits in 2024 for the first time in three years, with each business increasing its contribution. “

Adjusted operational income is submerged a bit, 6%. But it fed on a 2% increase in adjusted operational gains with the generation of net capital of 34%. Assets under administration increased 3% to reach £ 511 billion. The positive investment entry seems especially good in the current climate of fear of investors.

On the bottom line, the profits adjusted by action (EPS) grew by 8% to 15p. But what about what we have all been waiting for, dividends news?

The CEO said: “We can maintain the historical dividend by action of a materially higher and sustainable capital generation.“That is 14.6p per action again, for a 9% dividend yield at the end of the previous day. In my opinion, it must surely be the largest taxpayer to the price jump of the shares.

FTSE 250 passive income

Some of the best Ftse 250 Prognostic dividend yields are impressive at this time, some more than 10%. Surprisingly, 9% Aberdeen does not even reach Top 10. But these results have driven it higher in my list of possible purchases for passive income.

The greatest risk I saw was the lack of gain coverage for the dividend. The potential to pay dividends is a bit more complex than that of this type of investment company. But the drop in profits together with the decrease in assets under administration can lead to dividend cuts.

The company formed from the merger of Standard Life and Aberdeen Asset Management in 2017. And it was almost immediately affected by Lloyds banking group moving away. Lloyds withdrew £ 109 billion assets, seeing the new open as a competitor for its own insurance products.

It has taken time to turn around. But now it seems that it is happening, my fears of a dividend cut have recovered, although not completely.

Some convincing to do

I still believe that Aberdeen has some way to completely reverse the negative feeling of recent years. This last price peak of the shares is welcome. But the shares have still dropped 45% since the maximum point of 2021.

And we are definitely not in terms of economic force and new days of booming investment. But I think it could be a good time to consider Aberdeen actions for long -term passive income.