ASX Dividend Stocks Challenger FSG (CGF)

Challenger FSG (CGF) is a diversified financial services organisation, focused on providing solutions to financial intermediaries and their clients.

CGF also happens to be one of the larger wealth management companies in the stock market.

Recently CGF reported a FY10 net profit of $282.5 million, swinging from a $90.7 million loss a year earlier.

The profit result was driven by strong retail sales growth and improved returns on its invested funds.

Sales of guaranteed investment products surged 82% following a successful marketing and distribution campaign.

CGF sounded a positive outlook, unlike its major rivals, saying that it expects cash earnings at its Life business to grow 11% to $375 million.

Given CGF specialises in annuities, it is better placed to leverage off continuing market volatility as retirees will become more attracted to its low risk, fixed rate, products.

CGF also declared a final dividend of 8.5 cents per share, and it was one of the hot stocks on the day of the announcement, with its share price rocketing 8.2%.

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