Should I buy Phoenix Group stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Phoenix Group for over three years. Every month, over a million users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Phoenix Group.

What is Phoenix Group?

The Phoenix Group stock price

The price of Phoenix Group stock is rising this week. Trading at 646.00p, the share is up 1.33% over the past 24 hours and has seen continued positive momentum this week. Phoenix Group’s market capitalisation stands at £6.40 billion, with an average three-month volume of approximately 2.85 million shares. The stock currently posts a negative P/E ratio of -12.37 due to temporary losses, offers an attractive dividend yield of 8.47%, and has a beta of 1.10, indicating slightly higher volatility than the market. This combination of high yield and market resilience suggests investment potential for long-term income seekers.

Our full analysis on the Phoenix Group stock

Having conducted a comprehensive review of Phoenix Group’s recent financial results alongside its share price trajectory over the past three years, our analysis leverages a combination of financial indicators, technical momentum signals, peer benchmarking, and up-to-the-minute market data—synthesised with our proprietary evaluation models. This approach allows us to capture both the structural evolution and market sentiment currently surrounding Phoenix Group. So, why might Phoenix Group stock once again become a strategic entry point into the insurance and retirement solutions sector in 2025?

Recent performance and market context

Phoenix Group has demonstrated a marked resurgence in 2025, with its share price up to 646.00p—gaining 1.33% intraday and posting a strong 20.52% rise over the past twelve months. Market capitalisation is £6.40 billion and three-month average daily trading volume stands robust at around 2.85 million shares. This momentum has been boosted by annual results that exceeded expectations, as operational cash generation surged 22% to £1.403 billion and adjusted operating profit soared 31% to £825 million. Decisive governance changes and upward revisions to financial targets have firmed investor confidence. These developments occur against an increasingly favourable macro backdrop: easing monetary conditions, improved UK economic growth forecasts, and persistent demand for long-term savings products all provide tailwinds to Phoenix Group’s core segments. Notably, the UK’s structural pension gap and resilience of the retirement services sector support a bullish thesis for major players.

Technical analysis

Technical indicators point towards a constructive context for Phoenix Group. The current 14-day RSI sits at 45.01—neutral and suggesting the stock is neither overbought nor oversold, thus primed for responsive moves on key news. The MACD (6.65) registers a buy signal, echoing shifting sentiment positively. The stock trades above its 50-, 100-, and 200-day moving averages (with support at 640p and key resistance at 668p, established near the one-year peak), confirming a sustained medium- to long-term uptrend. Recent price action above these moving averages is often a precursor to further positive price developments, with trend-followers finding confidence in the structure. At these levels, Phoenix Group benefits from limited downside risk, while a potential break above resistance could trigger additional momentum.

Fundamental analysis

Phoenix Group’s investment case pivots on a blend of robust fundamentals and market leadership. Revenue and operating profit have grown at double-digit rates in 2024, driven by strong performance in both legacy and newly launched pension offerings. The firm’s current forward dividend yield of 8.47% stands out in the UK large-cap universe and continues to appeal to income-focused investors, particularly as the policy is well-covered by a £1.4 billion operational cash flow. Although the negative P/E ratio (-12.37) reflects temporary IFRS accounting variances—driven by short-term economic fluctuations rather than operational weakness—the company’s underlying profitability remains intact, and forward guidance points toward a rapid recovery with projected annual earnings growth of 95.1%.

Strategically, Phoenix Group is cemented as a leader in workplace pensions, with over 12 million clients and £290 billion in assets under administration. Innovative launches such as the Standard Life Smoothed Return Pension Fund, along with a disciplined cost-reduction plan targeting £250 million in savings by 2026, further reinforce its growth trajectory and adaptive capabilities. The broad client base, powerful brand, digital expansion, and ability to outpace sector rivals reaffirm Phoenix Group’s structural appeal and forward-looking potential.

Volume and liquidity

A key attribute for institutional and retail investors alike, Phoenix Group displays consistently strong liquidity, trading approximately 2.85 million shares daily. With a substantial float of 851.46 million shares, price discovery remains efficient and volatility is generally well-managed relative to sector comparables. The depth of market means investors benefit from narrow bid-ask spreads and greater flexibility in building or exiting positions without market disruption. This liquidity anchors Phoenix Group’s valuation, supporting a dynamic pricing environment and making it a go-to security for investors seeking a reliable and established FTSE presence in the insurance sector.

Catalysts and positive outlook

• Raised earnings and cash generation outlook: Upward revision in operational cash generation and target operating profit for 2026.
• Innovative product launches: Standard Life Smoothed Return Pension Fund and enhanced digital client servicing modules.
• Cost efficiency initiatives: £250 million in identified cost savings by 2026, supporting margin expansion.
• Sector and regulatory tailwinds: Favourable conditions in UK retirement demand, regulatory focus on pension adequacy, and incremental economic growth projections.
• Balance sheet flexibility: Strong cash generation enables both healthy capital returns and room for bolt-on acquisitions or deleveraging.
• Positive market sentiment: Upgraded targets and solid governance have attracted renewed analyst and institutional interest.
• Dividend stability: Consistently high and growing dividend, robustly covered by cash flows.

Importantly, Phoenix Group’s ongoing digitalisation and customer-centric innovation position it to capture a greater share in an evolving market. With industry consolidation underway, Phoenix Group’s scale and competitive advantages are set to play a crucial role in any future sector re-rating.

Investment strategies

• Short-term: Momentum is favourable, with technicals suggesting potential price advances as resistance is tested. Near-term catalysts—including upcoming results or strategic updates—may enhance sentiment quickly.
• Medium-term: The combination of resilient earnings, sector tailwinds and visible cost savings provides material scope for valuation expansion as fundamentals strengthen.
• Long-term: The stock’s leading brand, large client base, reliable yield, and well-defined strategy for digital innovation and operational efficiency offer an attractive profile for patient, income-seeking or growth-focused investors.
• Entry timing: Investors may wish to consider accumulating on technical pullbacks near support or ahead of positive news, maximising both relative yield and capital upside prospects.

The alignment with ISA and SIPP eligibility further improves Phoenix Group’s attraction for UK savers seeking tax-efficient compounding returns through the retirement cycle.

Is it the right time to buy Phoenix Group?

The evidence suggests Phoenix Group is currently navigating a favourable convergence of technical positioning, fundamental resilience, and market opportunity. Key strengths include its exceptional dividend yield, sustained cash generation, leading presence in the UK life and retirement solutions market, and a proven track record of adapting to evolving regulatory and competitive conditions. Though short-term accounting volatility has coloured recent earnings, the underlying operating performance and strategic initiatives have set the stage for renewed investor focus. The fundamentals justify renewed interest, and the stock may be entering a new bullish phase for 2025 and beyond.

Phoenix Group stands as a high-quality, income-generating opportunity at a time of ongoing sector transformation, making it an excellent candidate for serious consideration in portfolios seeking both defensive strength and forward momentum.

How to buy Phoenix Group stock in the UK?

Buying Phoenix Group stock online is quick, secure, and user-friendly with a regulated UK broker. Investors can choose between spot buying (owning real shares for long-term growth and dividends) or trading Contracts for Difference (CFDs) for a leveraged, flexible trading experience. Both options are widely accessible on major UK investment platforms. To help you select the best broker for your needs, you’ll find a comprehensive broker comparison further down this page.

Spot buying

A cash purchase of Phoenix Group stock means you buy actual shares listed on the London Stock Exchange, entitling you to dividends and voting rights. Typical UK brokers charge a fixed commission per order, usually between £5 and £10, payable in GBP.

Gain scenario

If the Phoenix Group share price is 646p (£6.46), you can buy around 154 shares with a £1,000 stake, including a brokerage fee of around £5.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on the price movement of Phoenix Group shares without owning the shares themselves. CFDs let you use leverage, increasing your market exposure with a smaller initial deposit. Costs usually include the spread (difference between buy/sell prices) and overnight financing fees if you hold your position for more than a day.

Gain scenario

You open a CFD position on Phoenix Group shares, with 5x leverage and a £1,000 margin.

This gives you a market exposure of £5,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, on a bet of £1,000 (excluding fees).

Final advice

Before you invest, always take time to compare broker fees, trading platforms, and support services. The best approach—spot buying or CFD trading—depends on your investment goals and trading style. For a detailed overview and tailored choices, see our broker comparison guide below.

Our 7 tips for buying Phoenix Group stock

The latest news about Phoenix Group

Phoenix Group shares see positive short-term momentum with the price rising 1.33% to 646p. The past seven days have shown an encouraging uptick, supported by strong trading volumes on the London Stock Exchange and reinforced by analysts’ consensus, which sets a price target above current levels.

Phoenix Group confirms its 2024 final dividend of 27.35p per share, reflecting a robust 8.47% yield. The announced dividend continues the group’s progressive and well-covered pay-out strategy, supported by operational cash generation of £1.4 billion. This underpins sector-leading income for UK investors and strengthens market confidence.

Latest technical analysis for Phoenix Group indicates a sustained bullish trend on medium and long-term timeframes. Moving averages for 50, 100, and 200 days continue to show buy signals, while the MACD and steady RSI suggest the stock is favourably positioned for further gains, attracting positive sentiment among domestic investors.

Phoenix Group’s annual results beat expectations, with adjusted operating profits up 31% and financial targets upgraded. Recent updates highlight upgraded profit and cash flow guidance through 2026, underlining strategic strength and management credibility, which are highly regarded in the UK’s financial sector.

Phoenix Group retains a top-three status in the UK workplace pension market, expanding its share of individual pension solutions. With more than 12 million customers and £290 billion in assets under administration, Phoenix Group’s local presence and innovation in retirement products continue to offer growth prospects well appreciated by GB-based institutional and retail investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.