Insurer and investment manager Legal & General Group (GB:LGEN) is one of the attractive FTSE dividend picks for 2024. The financial services company offers a lucrative 7.8% dividend yield, which is way above the sector average of 2.1%. Additionally, as per TipRanks’s Smart Score System, LGEN shares have a “Perfect 10” smart score, which implies that the stock could outperform the broader market over the long term.
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 Dividends
In line with its ambition to increase its dividend at 5% per annum through 2024, the company paid an interim dividend of 5.71p on September 26, 2023, up from the prior year’s payment of 5.44p.
In late 2020, Legal & General set a five-year plan for the period 2020 to 2024, under which the company is targeting capital generation of £8.0 billion to £9.0 billion, which is expected to significantly exceed estimated dividends of £5.6 billion to £5.9 billion. The company also aims to grow its earnings per share (EPS) at a faster rate than the dividend growth rate of 5% through 2024.
In the half-yearly report, the company said that it remains confident about achieving its targets. From the time it established its five-year goals through the first half of 2023, the company’s cumulative capital generation was £5.9 billion, while dividends paid reached £3.6 billion.
Is Legal & General Stock a Good Buy?
While high interest rates weighed on Legal & General’s assets under management (AUM) in the first half of 2023, the company’s performance in 2024 is expected to gain from potential interest rate cuts.
With five Buys, one Hold, and one Sell recommendation, LGEN shares have a Moderate Buy consensus rating. The average Legal & General share price target of 281.57p implies nearly 12% upside potential.
