Why the Suncorp (ASX:SUN) share price just broke its 52-week high

It’s been a positive 12 months for the $15 billion company.

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excited man reaching new record high on mountain side

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The Suncorp Group Ltd (ASX: SUN) share price has surpassed its 1-year record. Shares in the bank reached $11.53 before falling to $11.37 at the time of writing. The current price is 0.31% lower than yesterday’s close – quite the turnaround from earlier this morning.

With its share price up 28% over the past 12 months, let’s look at some of the more recent stories that have had a positive effect on Suncorp.

Suncorp’s positive 12 months

Earlier this month, Suncorp announced the sale of its remaining interests in the Tasmanian insurance market.

At the time, Suncorp CEO Steve Johnson said the move was “consistent with our focus on simplifying the Group and driving improvement in our core insurance and banking businesses.”

The Suncorp share price increased 1.2% that day.

Strong broker ratings on Suncorp may have also aided it in breaking its 52-week record.

In late June, analysts at Citi predicted the bank could pay a special dividend of 61 cents per share in FY21 and 58 cents per share in FY22. At today’s market price, this would equate to a yield of 5.4% and 5.1% respectively.

Similarly, UBS placed Suncorp in its list of companies it is expecting a dividend upgrade. Another company UBS are rating for high dividend payments is Bendigo and Adelaide Bank Ltd (ASX: BEN).

Suncorp share price snapshot

While the Suncorp share price is up 28% in a year, it is down 14% over the past 5 years.

On the first trading day of 2020, shares in Suncorp were trading for $12.96. It was impacted heavily by the COVID-19 pandemic and has still not recovered since then.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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