A FTSE 100 share that offers growth, dividends AND value!

Aviva‘s (LSE: AV.) a FTSE 100 share in which I opened a position almost a year ago. I have since topped up my credits. And I plan to increase my bet again when I have money to invest again.

I believe that the financial services giant looks very attractive in terms of growth and dividends. And the shares also look dirt cheap, by several measures.

This is why I think the company is a top one to consider right now.

Grow

Earnings growth at Aviva has been patchy in recent years. Operating income fell during the Covid-19 crisis, and then again in 2022 due to rising interest rates.

But in 2023, the company returned to growth. And City analysts expect profits to continue rising at healthy double-digit rates for at least the next three years:

Year	Earnings per share	Profit growth
2024	43.98p	17%
2025	50.87p	16%
2026	55.83d	10%

These bright forecasts reflect analysts’ expectations of falling interest rates and improving economic conditions. Combined, these could boost consumer spending and improve the performance of Aviva’s wealth management division.

Earnings will also benefit from ongoing demographic changes in the European and North American markets. More elderly people means greater demand for pension, protection and asset products.

Dividends

Like its profits, Aviva’s dividend record has also been up and down since 2019.

However, with profits expected to rise – and the company’s balance sheet significantly strengthened under current CEO Amanda Blanc – shareholder payouts, which have risen steadily since the end of the pandemic, are likely to follow suit:

Year	Dividend per share	Dividend growth
2024	35.43p	6%
2025	38.13p	8%
2026	40.88p	7%

Dividends are never guaranteed. But Aviva’s cash-rich balance sheet means Aviva is in prime position to meet these expectations.

The Solvency II shareholder coverage ratio was 205% in June, more than twice the level required by regulators.

Value

Based on current earnings expectations, Aviva shares continue to rise price-earnings growth (PEG) proportions of 0.6 for 2024 and 2025, and 0.9 for 2026. Any reading below 1 indicates that a stock is undervalued.

The Footsie company also offers excellent value based on expected earnings. Dividend yields its a huge one 7.4% for this year, 8% for 2025 and 8.6% for 2026.

By comparison, the average dividend yield for FTSE 100 shares is way back at 3.7%.

A top purchase

Like any UK share, Aviva exposes its investors to a degree of risk. Profits and dividends could be disappointing if, for example, interest rates do not fall steadily, dampening product sales. It also faces stiff competition from the likes of Legal & General, Zurich And AXA.

But on balance, I believe the potential benefits of owning Aviva shares outweigh these risks. And the low valuation provides a cushion in case news flow deteriorates, which in turn could limit any stock price reversals.

On balance, I think Aviva is one of the best ‘all-rounders’ on the FTSE 100 today.