Legal & General Results.

[idpickering]

· OPERATING PROFIT1 OF £1,902M, UP 10% (2017: £1,723M)

· EARNINGS PER SHARE3 OF 24.74P, UP 7% (2017: 23.10P) - impacted by reductions in asset markets

· RETURN ON EQUITY AT 22.7% (2017: 25.6%)

· FULL YEAR DIVIDEND UP 7% TO 16.42P PER SHARE (2017: 15.35P)

· PROFIT AFTER TAX4 DOWN 3% TO £1,827M (2017: £1,891M) - prior year one-off US tax benefit of £246m

· SOLVENCY II COVERAGE RATIO5 OF 188% (2017: 189%)

· SOLVENCY II OPERATIONAL SURPLUS GENERATION UP BY 14% TO £1.4BN (2017: £1.3BN

And later;

year dividend up 7%

Legal & General has a progressive dividend policy reflecting the Group's expected medium term underlying business growth, including net release from operations and operating earnings. There is no change to our dividend policy.

In line with our policy, the Board has maintained its view of the medium-term trajectory of dividend growth, taking into account sustainability across a wide range of economic scenarios and the Group's anticipated financial performance. Accordingly, the Board has recommended a final dividend of 11.82p (2017: 11.05p) giving a full year dividend of 16.42p (2017: 15.35p), 7% higher than 2017.

Ex div 25 Apr 19, paid 6 Jun 19.

https://www.investegate.co.uk/legal---3 ... 00059530R/

[Arborbridge]

I'm glad to be overweight in these - makes a change to see dividends going up instead of doubts about duffers being discussed.

Tempting to be even more overweight to catch the next div. (Currently 1.1xmedian weight)


Arb.

[idpickering]

I'm glad to be overweight in these - makes a change to see dividends going up instead of doubts about duffers being discussed.

Tempting to be even more overweight to catch the next div. (Currently 1.1xmedian weight)


Arb.

My fave insurance company, but sadly I'm up to full weighing on this share. I'm unlikely to buy more currently.

Ian.

[Darka]

Likewise I have a full holding and am very glad that I do, nice results!

Thanks Ian

[Dod101]

This has always in my book been about the most dependable share I hold. Dividend up 7% and a very steady share price. I wish all my shares were like this.

Dod

[idpickering]

This has always in my book been about the most dependable share I hold. Dividend up 7% and a very steady share price. I wish all my shares were like this.

Dod

There is a temptation to dump my other holdings in the insurance sector and put it all in LGEN. although I’m unlikely to do so.

Ian.

[idpickering]

A, to me at least, surprising 3% drop in share price on market opening. I just don't get investor sentiment sometimes. LGEN are a mainstay in my HYP, and there they'll stay.

Ian.

[Dod101]

Our markets are fickle. The only negative I can find is the Return on Equity is down a bit, to a mere 22.7%. Go back to sleep on this one I think, and look forward to the dividend.

Dod

[Raptor]

I was late onto the LGEN bandwagon as had a large stake in SLA at the time, but I re-sectored them into Asset Management and brought a large slice of LGEN last April at £2.63. They are currently 6.11% of my HYP, giving me 5.77% of my income. Currently waydown in my top up table (not that I have had any money to top-up for some time ).

Currently the price is a "tad" up at 0.14%.

Raptor.

[Arborbridge]

This has always in my book been about the most dependable share I hold. Dividend up 7% and a very steady share price. I wish all my shares were like this.

Dod

What percentage of your HYP-ish holdings are in LGEN, Dod? What do you feel comfortable with?

I've been burned before by having bigger than median bets, but it does seem that LGEN might be worth a bigger stake than some others.

Ironically, if one sticks by "the Method" as devised by TJH, my next insurance topups would be SLA followed by Aviva, neither of which would be as appealing at the moment as LGEN is, and neither of which have the dependable looking history.

One apparent weirdness of this method is that, because it takes advantage of an increasing yield (via sinking price), it does demand that one tops up losers and not winnders. Now, this is fine provided those companies are temporary losers due to market sentiment, but not if they go on to collapse.
I can claim to have zero knack at knowing which it will be!

[richfool]

A, to me at least, surprising 3% drop in share price on market opening. I just don't get investor sentiment sometimes. LGEN are a mainstay in my HYP, and there they'll stay.

Ian.

Yes, I was puzzling why the SP had gone down if the results were so good. Though I did spot this bit:

PROFIT AFTER TAX4 DOWN 3% TO £1,827M (2017: £1,891M) - prior year one-off US tax benefit of £246m

[idpickering]

A, to me at least, surprising 3% drop in share price on market opening. I just don't get investor sentiment sometimes. LGEN are a mainstay in my HYP, and there they'll stay.

Ian.

Yes, I was puzzling why the SP had gone down if the results were so good. Though I did spot this bit:

PROFIT AFTER TAX4 DOWN 3% TO £1,827M (2017: £1,891M) - prior year one-off US tax benefit of £246m

Thanks for that richfool. The SP down 3.8% as I type. Tomorrow we've got Admiral Group and Aviva reports to look forward to, hopefully. Tin helmets on standby! Not sure if I'll have time to do the honours tomorrow, as the dentist beckons. We'll see.

Ian.

[tjh290633]

I've been burned before by having bigger than median bets, but it does seem that LGEN might be worth a bigger stake than some others.

Ironically, if one sticks by "the Method" as devised by TJH, my next insurance topups would be SLA followed by Aviva, neither of which would be as appealing at the moment as LGEN is, and neither of which have the dependable looking history.

One apparent weirdness of this method is that, because it takes advantage of an increasing yield (via sinking price), it does demand that one tops up losers and not winnders. Now, this is fine provided those companies are temporary losers due to market sentiment, but not if they go on to collapse.
I can claim to have zero knack at knowing which it will be!

As you know, Arb, share prices go up and go down. By my method, shares above median weight seldom qualify for topping up. Indeed, the objective is to have roughly equal weight holdings, so topping up a share which is above weight does not make sense.

Do not confuse winners and losers with rising or falling share price. Rather it should be dividends that you address. Some, of course, will use total return but we are interested in income.

All my insurers report today and tomorrow - LGEN, ADM and AV. - which makes this an interesting time.

TJH

[Dod101]

[
What percentage of your HYP-ish holdings are in LGEN, Dod? What do you feel comfortable with?

As a percentage of my HYPish holdings, L & G is 7.7%. That does not bother me. The HYPish holdings are around 80% of my total portfolio and I am inclined to look at individual holdings in the context of the entire portfolio which would bring L & G down to around 5.8%. To say more is I think outside the scope of this Board.

With my newfound skills at tables (thanks to IAAG) I might even post my holdings at some point (on another Board!)

Dod

[moorfield]

Not sure if I'll have time to do the honours tomorrow, as the dentist beckons. We'll see.

Early morning appointment Ian ? I normally have mine at 2.30

Good luck.



(Now, where did I leave my coat ....)

[fisher]

My holding in LGEN is now 2.2 times the median average of my HYP (and twice the mean average). I do not really tinker any more having made some very poor decisions in the past when selling winners to top up those lower down.

Although LGEN is 2 times the Median it is still just 5.3% of the overall portfolio as my HYP has 37 holdings. I start to get less comfortable when a single stock becomes more than 5% of the overall but at around 5% I see it as a reasonable size (it would be very near to median when looked at as if I had 20 stocks in my HYP), so I am happy with it not being too overweight in the HYP.

[idpickering]

Not sure if I'll have time to do the honours tomorrow, as the dentist beckons. We'll see.

Early morning appointment Ian ? I normally have mine at 2.30

Good luck.



(Now, where did I leave my coat ....)

We live on a small island with 200 residents. We’re getting the ferry to the mainland at 0745hrs tomorrow. Back on track though, LGEN stand at about 4% in capital value terms of my 32 share HYP, so about right.

Ian.

[idpickering]

With my newfound skills at tables (thanks to IAAG) I might even post my holdings at some point (on another Board!)

Dod

That’s a shame Dod. I would certainly like to see your HYP on this board. I’m sure I’m not alone in that.

Ian

[Arborbridge]

With my newfound skills at tables (thanks to IAAG) I might even post my holdings at some point (on another Board!)

Dod

That’s a shame Dod. I would certainly like to see your HYP on this board. I’m sure I’m not alone in that.

Ian

I'm with Ian: it will then be viewed by the dedicated HYP community. I rarely look at other boards unless something prompts me to.

Can you contribute a table which just isolates the HYP shares and post that here? I know we had a post of your shares a long while back, but it would be nice for us if your could update us with changes regularly.

Arb.

[Dod101]

Hi Arb

Nothing very special with my shares I fear, but I can certainly post a table in due course.

Dod