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Legal & General (LGEN)

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idpickering
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Legal & General (LGEN)

#205798

Postby idpickering » March 6th, 2019, 7:16 am


idpickering
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Re: Legal & General (LGEN)

#206008

Postby idpickering » March 6th, 2019, 4:09 pm

This from TMF;

Forget Barclays and its big yield! I think this 6%-yielding FTSE 100 stock could be a better buy

I’d rather hunt for big dividend yields in the wider financial sector and not just among the banks. One promising candidate is Legal & General Group (LSE: LGEN) the FTSE 100 life assurance, investment management and general insurance provider.

The company has a decent six-year record of generally rising normalised earnings per share, operating cash flow, and dividends. And at the recent share price close to 277p the stock scores well against traditional value indicators with the price-to-earnings ratio running around nine and the dividend yield just over 5.9%. Meanwhile, City analysts have pencilled in an advance in the dividend of almost 7% for 2019. Things seem to be ticking along nicely.

Today’s full-year results report reveals that operating profit rose 10% in 2018 compared to the year before and earnings per share lifted 7%. The directors expressed their optimism by pushing up the full-year dividend by 7%. They said in the report that the firm is well placed to grow further and take advantage of organic growth opportunities and bolt-on acquisition opportunities. The plan is to support the company’s strategy with ongoing investment in technology “in a measured way.”


https://www.fool.co.uk/investing/2019/0 ... etter-buy/

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Re: Legal & General (LGEN)

#206012

Postby Dod101 » March 6th, 2019, 4:29 pm

TMF authors are slow learners. L & G has been a share suitable for income seekers for at least the last 20 years to my certain knowledge. They had a blip during the 2008/9 crisis but very quickly recovered their poise and soon not only had restored their dividend but quickly increased it which they have been doing ever since. All to do with culture of course. Culture is not something easily changed for good or bad which is why shares like L& G, HSBC, Unilever, Shell and others have been good for so long and also why Standard Chartered, BP and most of the contractors are so accident prone.

Dod

(Edited 6/3. Corrected text. Raptor)

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Re: Legal & General (LGEN)

#206030

Postby Alaric » March 6th, 2019, 5:49 pm

Dod101 wrote: L & G has been a share suitable for income seekers for at least the last 20 years to my certain knowledge.


They are also building something of a monopoly, or at least a large market share of the private sector provision of lifetime income. Defined benefit schemes seem to be beating a path to their door to take longevity and investment risks off the scheme's hands. It can be a difficult market to enter, given the capital requirements imposed by regulators.

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Re: Legal & General (LGEN)

#206040

Postby tjh290633 » March 6th, 2019, 6:21 pm

When was it that LGEN became separate from Barclays? My son worked for them at the time, which is relatively recent. Looks like it might have been 2005, see https://en.wikipedia.org/wiki/Legal_%26_General

TJH

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Re: Legal & General (LGEN)

#206043

Postby Alaric » March 6th, 2019, 6:36 pm

tjh290633 wrote:When was it that LGEN became separate from Barclays?


All that the Wiki entry suggests is that they jointly owned Gresham Insurance.

The company sold the Legal & General Bank and Legal & General Mortgage Services to Northern Rock in 2003[13] and sold its stake in Gresham Insurance, its joint venture with Barclays Bank, to Barclays in 2005.[14]


Legal & General has never otherwise been directly associated with Barclays.

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Re: Legal & General (LGEN)

#206061

Postby richfool » March 6th, 2019, 9:18 pm

I hold LGEN along with SLA. The capital value of LGEN seems to be holding up better. Today's modest falls are tempting me to top up, though I am rather overweight with financials.

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Re: Legal & General (LGEN)

#206066

Postby jackdaww » March 6th, 2019, 10:03 pm

i bought in first in 2003 at 72p.

they were obtainable at well under 50p early 2009 (when of course IC advised selling) .

since then they ave been available not much over £2.

excellent for total returns.

8-)

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Re: Legal & General (LGEN)

#207668

Postby idpickering » March 14th, 2019, 1:17 pm

This top FTSE 100 dividend stock is up 20% in 2019. Here’s why it could have further to go

Shares in financial services group Legal & General (LSE: LGEN) have enjoyed a strong run in 2019 so far, rising more than 20%. Personally, I’m pretty happy with that performance, as the stock is actually the largest holding in my own dividend portfolio right now.

Yet analysing the investment case for LGEN, I think the stock could have plenty more upside from current levels. Here’s a look at four reasons I believe the stock can keep rising.

FY2018 results

For starters, recent full-year results released on 6 March were decent, with the company advising that it is positioned well for future growth. For FY2018, operating profit increased 10% and earnings per share rose 7% – a solid performance given the political uncertainty and equity market weakness experienced last year. This demonstrates the resilience of Legal & General’s diverse business model which is linked to a number of growth drivers including the world’s ageing population.

The group also said that it remains confident that it can continue its momentum into 2019 (as it believes that its growth drivers are largely unaffected by on-going political and economic uncertainty) and stated that it’s on track to deliver earnings per share compound annual growth of 10% up to 2020. If the company can deliver on this earnings guidance, the share price should keep rising.

7% dividend increase

What I also liked about the recent full-year results was that the group hiked its dividend payout by a healthy 7% to 16.42p per share.


https://www.fool.co.uk/investing/2019/0 ... her-to-go/

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Re: Legal & General (LGEN)

#216808

Postby richfool » April 23rd, 2019, 12:40 pm

A reminder that LGEN goes ex-dividend tomorrow (25/4/19), div paid: 6/6/19. The larger final dividend of the year - 11.82p

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Re: Legal & General (LGEN)

#216845

Postby maximan » April 23rd, 2019, 3:49 pm

Hi Richfool
The 25th is thursday and I am looking forward to it.

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Re: Legal & General (LGEN)

#225695

Postby idpickering » May 31st, 2019, 7:09 am

Legal & General to sell its General Insurance business to Allianz

Legal & General Group Plc ("Legal & General") announces that it has agreed to sell its General Insurance ("GI") business to Allianz Holdings plc. The proposed transaction, which is subject to customary regulatory approvals, is expected to complete in the second half of 2019.

The financial consideration from the proposed sale consists of a base price of £242 million payable at completion and potential further payments over a three year period from ongoing commercial arrangements. The base price is commensurate with IFRS book value. The Group's Solvency II ratio is expected to increase by approximately 2% following completion of the transaction. The proceeds from the disposal will be reinvested in Legal & General's attractive and growing core businesses.


https://www.investegate.co.uk/legal---g ... 00047201A/

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Re: Legal & General (LGEN)

#225697

Postby Dod101 » May 31st, 2019, 8:16 am

Thanks Ian. I doubt that it will be very material to L & G though. £242 million is small beer to them.

I was trying to find that when I read of the Aviva moves to split their business, which I expect will be a precursor for them probably doing the same. Aviva are much bigger in the general business side though, I am pretty sure, but I cannot see them selling the life side which is generally perceived as a better long term bet.

Dod

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Re: Legal & General (LGEN)

#225711

Postby monabri » May 31st, 2019, 9:17 am

Dod101 wrote:Thanks Ian. I doubt that it will be very material to L & G though. £242 million is small beer to them.

I was trying to find that when I read of the Aviva moves to split their business, which I expect will be a precursor for them probably doing the same. Aviva are much bigger in the general business side though, I am pretty sure, but I cannot see them selling the life side which is generally perceived as a better long term bet.

Dod



viewtopic.php?p=225285#p225285

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Re: Legal & General (LGEN)

#225725

Postby richfool » May 31st, 2019, 10:07 am

But is that a good thing or bad thing, - selling off their general insurance businesses?

Standard Life Aberdeen have done it and now LGEN. I'm not sure about LGEN's annuity business, but SLA sold theirs.

Does it not make them just asset managers and as such more prone to the vagaries - ups and downs - of financial markets? SLA have fared worse since they shed their insurance business. Doesn't diversification have a part to play?

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Re: Legal & General (LGEN)

#225731

Postby Alaric » May 31st, 2019, 10:21 am

richfool wrote:
Standard Life Aberdeen have done it and now LGEN. I'm not sure about LGEN's annuity business, but SLA sold theirs.


I didn't think Standard Life had any general insurance business. All their stuff was life and pensions and went to Phoenix.

It's a specialist business but Legal & General are very big in annuities particularly at the corporate level of taking on liabilities from pension funds wishing to reduce risk. So I think they are staying in that market.

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Re: Legal & General (LGEN)

#225797

Postby Dod101 » May 31st, 2019, 2:23 pm

richfool wrote:But is that a good thing or bad thing, - selling off their general insurance businesses?

Standard Life Aberdeen have done it and now LGEN. I'm not sure about LGEN's annuity business, but SLA sold theirs.

Does it not make them just asset managers and as such more prone to the vagaries - ups and downs - of financial markets? SLA have fared worse since they shed their insurance business. Doesn't diversification have a part to play?


Assuming your first question is about L & G, as I said I think their general business was small enough not to be very material in the scheme of things. They are only getting £242 million which is almost immaterial for a group like L & G so I suspect it was a bit of a distraction for them and in that respect the sale is probably a good thing. L & G are still in the risk taking life assurance business.

SLA, as Alaric has said, sold off their insurance business, which happened to be all life assurance from the acquisition of Standard Life, and so SLA has become simply a fund manager with a 20% stake in a life assurer (Phoenix). I certainly think that at least in the short term SLA has weakened its position because things are not very rosy for fund managers at the moment with fees under pressure caused to some extent by the move to passive funds.

As for Aviva anything I say is simply speculation but the days of so called composite insurers (handling life assurance and general insurance under one roof) seem to be coming to an end, In fact RSA sold its life business many years ago and it may be that Aviva are thinking of a split as well. Time will tell.

Dod

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Re: Legal & General (LGEN)

#226028

Postby richfool » June 1st, 2019, 4:43 pm

Thanks for the clarification Alaric and Dod.

LGEN pay their dividend (11.82p) this Thursday, 6th June, if I have my dates right.

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Re: Legal & General (LGEN)

#226122

Postby idpickering » June 2nd, 2019, 8:02 am

richfool wrote:Thanks for the clarification Alaric and Dod.

LGEN pay their dividend (11.82p) this Thursday, 6th June, if I have my dates right.


That is correct. See https://www.legalandgeneralgroup.com/in ... -calendar/

I'm toying with buying more of this, what I believe, is a solid HYP stalwart.

Ian.

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Re: Legal & General (LGEN)

#226127

Postby jackdaww » June 2nd, 2019, 8:41 am

idpickering wrote:
richfool wrote:Thanks for the clarification Alaric and Dod.

LGEN pay their dividend (11.82p) this Thursday, 6th June, if I have my dates right.


That is correct. See https://www.legalandgeneralgroup.com/in ... -calendar/

I'm toying with buying more of this, what I believe, is a solid HYP stalwart.

Ian.


=========

hope you are right -- there arent many left !

i still have a big holding .

:)


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