I reckon the Aviva share price is too cheap to resist. I’d buy it in an ISA today

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first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. The Aviva (LSE: AV) share price is climbing again after years in the doldrums, but still trades at a temptingly-low valuation.I’ve been a fan of the FTSE 100-listed insurance company for years, and it’s high on my list of companies to buy for this year’s Stocks and Shares ISA allowance. There’s a tempting opportunity here, but also a few risks.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…My biggest concern is that the Aviva share price has gone nowhere in years. A decade ago, it traded at 450p. Right now, it stands 12% lower at 396p. Investors have still made good money over that period, due to Aviva’s generous dividends, but the share price is an undoubted disappointment. It looks a flop compared to rival FTSE 100 insurer Legal & General Group, which also pays generous dividends but whose share price is up 156% over 10 years.Value trip or opportunity?My longstanding worry is that Aviva is a classic value trap. The stock looks cheap, but it’s because management has failed to unleash its potential.But the Aviva share price looks like it’s finally coming alive under new CEO Amanda Blanc. It’s up 37% over six months, boosted by last week’s results which showed full-year underlying operating profit of £3.2bn. That’s broadly in line with last year, despite the pandemic, which hit its core UK, Ireland and Canada businesses.Blanc is pulling out of non-core markets, including Singapore, Vietnam and Poland. Last week, we learned that Aviva Italy is being sold for €873m. When added to the €3.2bn pocketed from selling Aviva France, the group has enjoyed a real liquidity and cash boost. It now boasts £3bn of excess capital and £3.9bn in cash.I’m tempted by the Aviva share priceAnalysts hope its cash pile could make its way to investors, in the shape of share buybacks. It could also help Aviva expand its bulk annuities business.The good news is that dividends are restored after last year’s Covid cut. The full-year 21p is a step up from the 15.5p paid in 2019, but well down on the 30p paid in 2018. Management is looking to increase it every year, by low- to mid-single digits. The Aviva share price already offers a forward yield of 5.8% right now, with solid cover of 2.4. Despite the share price rebound, I think there’s still a buying opportunity here. Aviva trades at just 7.2 times forward earnings. I’d buy for the long term, as part of my retirement portfolio, and reinvest all my dividends for growth until I need to draw the income.Top ISA dividend stockTrimmed-down, Aviva can now focus on what it does best, although there’s still the question of whether it should separate its asset management and general insurance arms. Stock market volatility remains a risk, as does the uncertain post-Covid recovery.Today’s low Aviva share price makes it one of the most tempting dividend growth stocks on the FTSE 100 for me. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this.center_img Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I reckon the Aviva share price is too cheap to resist. I’d buy it in an ISA today Harvey Jones | Tuesday, 9th March, 2021 | More on: AV See all posts by Harvey Joneslast_img

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