FTSE 100 listed financial services company Legal & General Group Plc (GB:LGEN) offers a high dividend yield of 8.17%. LGEN is a multinational financial services firm with three main areas of business: Investing and Annuities, Investment Management, and Insurance.
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The company paid its most recent dividend of 5.71p per share on September 26, 2023, 5% higher than the dividend payment in the first half of 2022. Furthermore, LGEN earns a TipRanks Smart Score of Nine, meaning it is highly likely to outperform market expectations.
TipRanks provides a range of tools to assist users in identifying suitable dividend stocks that align with their preferences. Here, we used TipRanks’ Top Dividend Shares tool for the UK market to identify LGEN stock. This tool simplifies the stock selection process, making it more efficient for users seeking specific dividend investments.
Legal & General’s Progressive Dividend Policy
During LGEN’s November 2020 Capital Markets Event, the board announced its intent to grow dividends at low to mid-single digits through 2024. Since 2020, the company has paid £3.6 billion in dividends through the first half of 2023 and is expected to deploy £5.6-5.9 billion in total dividends by 2024. Notably, the board intends to continue growing dividends at 5% annually until 2024. Moreover, the company expects cumulative capital generation of £8.0- £9.0 billion over 2020-2024 to significantly exceed dividends.
Importantly, Legal & General boasts a top-notch retirement solutions business, hailed as one of the leaders in the U.K. Pension Risk Transfer segment. Plus, its Investment Management has been resilient despite a market downturn. Finally, the Insurance segment continues to underwrite hefty premiums in both the U.K. and the U.S.
Are LGEN Shares a Good Buy?
On TipRanks, LGEN stock has a Moderate Buy consensus rating based on five Buys, one Hold, and one Sell rating. The Legal & General Group share price forecast of 279.33p implies 13% upside potential from current levels. Year-to-date, LGEN shares have gained 6.8%.
