While considering investing in UK stocks, it is worth researching Legal & General Group Plc (GB:LGEN), a high-yielding dividend stock. LGEN offers a dividend yield of 8.08%, significantly higher than the sector average of 2.11%. FTSE-listed Legal & General is a multinational financial services firm, with a prime focus on investment management, lifetime mortgages, pensions, annuities, and life assurance.
LGEN is set to pay its next dividend on June 6, 2024. Its last interim dividend of 5.71p per share was paid in August last year, 5% higher than the dividend payment in the first half of 2022. Furthermore, LGEN earns a TipRanks Smart Score of Perfect 10, meaning it is highly likely to outperform market expectations.
TipRanks offers a wide range of tools to assist users in identifying suitable dividend stocks that align with their risk-return profile. 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 Boasts a Progressive Dividend Policy
Legal & General is scheduled to report its full-year Fiscal 2023 results on March 6, 2024. In 2020, the company decided to follow a progressive dividend policy, with an intent to grow dividends at low-to-mid-single digits through 2024. Importantly, LGEN is expected to distribute £5.6 to £5.9 billion in total dividends from 2020 through the end of this year.
LGEN is an important player in the UK’s Pension Risk Transfer (PRT) segment. The company recently announced that 2023 was a record-breaking year for PRT. In the UK, LGEN secured £50 billion worth of pension liabilities while in the U.S., the company reached roughly $45 billion. Meanwhile, the company’s insurance segment also continues underwriting significant premiums across the regions.
Are LGEN Shares a Good Buy?
With five Buys and one Hold rating, LGEN stock commands a Strong Buy consensus rating on TipRanks. The Legal & General Group share price forecast of 293.17p implies 20.5% upside potential from current levels. Year-to-date, LGEN shares have lost 2.2%.
Ending Thoughts
Legal & General has five solid businesses that have market-leading positions in the regions they operate. The company has a robust strategy to improve its financial performance and reward shareholders in the long run. Plus, the company is well-positioned to continue with its shareholder-friendly approach and outperform peers when global economies stabilize.
