M&G PLC (LSE:MNG) raised its dividend 2% as the savings and investment group reported broadly flat profits for 2025, as a sharp turnaround in net inflows offset pressure elsewhere in the business.
The FTSE 100 group declared a second interim dividend of 13.8p per share, payable on 30 April, bringing the total dividend for the year to 20.5p, up 2% on 2024.
Adjusted operating profit came in at £838 million, up £1 million a year earlier but 2% ahead of analyst expectations.
The headline figure masked a significant improvement in flows; however, with net inflows from open business swinging to £7.8 billion from outflows of £1.9 billion in 2024. This was said to be driven by strong demand in asset management and a recovery in its PruFund and bulk purchase annuity businesses.
Total assets under management rose to £375.9 billion from £345.9 billion.
Broker Panmure Liberum noted the results were "materially better than consensus expectations".
But it said questions remained over why M&G was not funding further growth or launching a share buyback, with the stock trading on roughly 10.5 times two-year forward earnings and offering a dividend yield of around 7%.
Shares fell 1.4% to 296.3p on Thursday, amid a broader market sell-off.