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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Legal & General Group Plc | LGEN | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.40 | 0.18% | 224.90 | 15:48:28 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 224.80 | 223.80 | 225.60 | 224.50 |
| Industry Sector |
|---|
| LIFE INSURANCE |
| Top Posts |
|---|
Posted at 24/10/2024 15:55 by pj84 This is an investment forum for investors who wish to take control of their own investments and if anyone on here is naive enough to NOT realise that both the capital value and the dividends of any share can both rise and fall. They shouldn’t be investing in individual shares.I am not sure who these supposed naïve investors are, that you are trying to protect by being pedantic and considering Goldgeezer’s original post as a purely factual statement and I doubt if there are any such naïve investors reading this forum. There are no certainties when it comes to investing which is always dependent on unknown events in the future and even investing in government gilts by buying at issue and holding to redemption which is probably the closest you can get to a completely risk free investment, is still not entirely without risk and I am sure we can both think of events where the future interest payments or the final redemption could be affected by an unknown event no matter how unlikely. In my view, given the current level of interest rates which are predicted to fall, I believe the current share price and dividend represents an excellent time to invest on a long-term view and whilst I hope both the share price and dividends do increase over the next 7 plus years. I have no problem with the general thrust of Goldgeezer’s statement that even if they don’t this will still be a relatively low risk investment even if there is no growth in the share price or the dividend and current shareholders are still likely to be well rewarded over the longer term. |
Posted at 15/10/2024 18:39 by pierre oreilly Well Rong and Ronger, I go away for a couple of weeks, decide to take your filter off meaning I haven't seen your posts for 3 or 4 weeks, and I see you are still talking about me. Oh well. I'm really not worth trolling for.As to my investment style, it's really Buffet investment style (someone explain who he is please). Small caps, when I used to be bothered with them, is really Slater style. With results like them too. Ltbh for big caps. No staring at screens and praying all day, nor being jealousy obsessed with successful investors. |
Posted at 23/9/2024 11:47 by spud Legal & General investors unhappy with £1.2bn Cala Homes saleThe apparent disappointment over the terms of the deal agreed with Sixth Street Partners and Patron Capital, which has an enterprise value of £1.35 billion, continues the lacklustre run for shares since Simões set out his strategy in June. Alongside his vision for a “growing, simpler, better-connected L&G”, Simoes pledged £200 million a year of share buybacks and 2% dividend growth starting from next year. He told the City this would equate to more than L&G’s previous policy of 5% dividend growth under predecessor Nigel Wilson, who spurned buybacks in favour of investment. The company, whose 9% yield makes it a popular stock among FTSE 100 income investors, is due to pay an interim dividend of 6p a share on 27 September. The more disciplined approach to capital allocation under Simões meant CALA and some other assets were recently put into a new Corporate Investments Unit, with the goal of maximising shareholder value ahead of potential divestment. L&G said today that the CALA proceeds will primarily be used to reinvest in the group, which is focused on institutional retirement, asset management and retail savings and protection. It will also consider increasing shareholder returns through ongoing buybacks. The sale reduces L&G’s Solvency Capital Requirement by about £100 million, which analysts at Jefferies reckon lifts the company’s Solvency II ratio by three percentage points. The figure stood at 223% in August’s half-year results. Highlighting the deferred proceeds and the limited near-term upside to special capital returns, the City bank this morning predicted a muted share price response to the deal. The level of expectation attached to the CALA disposal is in sharp contrast to 2013, when the company spent a modest £70 million buying half the housebuilder. It was the first deal for a new Legal & General Capital division, which was set up following the financial crisis and had the aim of investing directly in companies and assets in under-funded sectors of the economy. CALA started as the City of Aberdeen Land Association in 1875 and was the first Scottish company listed on the London Stock Exchange. Since L&G’s first involvement in 2013, revenues and profits have grown by five and ten-fold to £1.3 billion and £112 million respectively. It has tripled the number of homes built each year to 2,917, with the focus on the south of England, Cotswolds and Scotland. L&G took full ownership of CALA in 2018, when it bought out one of today’s parties — Patron Capital — in a deal that valued the business at £605 million. spud |
Posted at 09/9/2024 18:05 by jam62 When you write an option you take money to give the right to somebody to either buy or sell shares to you at a pre-determined price.In the above example you are giving the right to an investor to sell shares to you. If that investor does not own any shares in that particular company then you are effectively writing (taking a premium) to facilitate the opening of a naked short. If the giver of the premium has the stock he will be a covered shorter (versus a naked shorter). However, the term shorter assumes the investor sells with the intention of buying back. In the case of a naked short the giver of the premium has no alternative but to buy back, unless the underlying company goes bust. |
Posted at 03/9/2024 21:02 by richie1218 A bit of lite reading while we await the share price to move northwards ..Race for British debt as pensioners die younger Tue, 3 Sept 2024 A drop in pensioner life expectancy since Covid has helped to fuel record demand for Labour’s first government bond sale, according to experts. Investors placed £110bn of orders for a £8bn bond sale on Tuesday, the first gilt issue since Sir Keir Starmer became Prime Minister. The level of demand was the highest ever recorded in proportion to the size of the sale, according to an analysis by Bloomberg. The Debt Management Office (DMO) was selling 15-year gilts that will mature in January 2040, paying an interest rate of 4.375pc. Market participants said the relatively short duration of the debt explained the demand. Megum Muhic, vice president at RBC Capital Markets, said falling life expectancies in retirement meant UK pension funds were racing to buy 15-year bonds, instead of the 25-year bonds, so that they could realise their investment gains sooner. Mr Muhic said: “Pension funds are very big buyers of long-dated gilts and their average liabilities have been getting shorter as average life expectancies in retirement have been getting shorter.” The average life expectancy for a man in Britain aged 65 dropped from 23 years to 21.5 between 2015 and the end of 2023. For women of the same age, it fell from 25.5 years to less than 24, according to the Institute and Faculty of Actuaries. Around half of this drop off has occurred since the pandemic but the trend began before Covid. “It is a big shift going on. There are a lot more buyers in this sector, their focus has shifted from 25-year [bonds],” Mr Muhic said. On the surface, record levels of demand look like a boost for Chancellor Rachel Reeves, who has pledged to “get to grips with the public finances” and plug a £22bn blackhole in the public finances. However, analysts said the figures were not representative of a vote of confidence in the government. Althea Spinozzi, head of fixed income strategy at Saxo Bank, said: “I completely dismiss that idea. We know that fiscal spending will continue to be high.” Instead, investors are betting that the rate offered on the bonds will offer good value as the Bank of England continues to cut interest rates, Ms Spinozzi said. The high levels of demand will also have little impact on government borrowing costs as these are determined primarily by Bank Rate expectations. Mr Muhic said: “It is expectations on what the Bank of England will do that drives 95pc of government borrowing costs.” |
Posted at 06/8/2024 08:10 by masurenguy Hedge funds blamed for chaos that wiped trillions off sharesRising yen catches out borrowers and biggest tech stocks add to losses A global scramble by opportunistic hedge funds to exit a well-trodden cheap borrowing gambit has been blamed for the share sell-off that shook financial markets on Monday. Japan suffered a fully fledged flight from shares with stock prices falling by 12% and the jitters reverberated round the world, with share prices in London and then Wall Street falling sharply amid a stampede to reduce risk in portfolios and raise hard cash. Analysts said that although weak job numbers in the United States last week and scepticism about the valuations of the biggest US technology groups may explain some of the souring sentiment, it was the wrongfooting of investors using a technique known as the “yen carry trade” that had prompted and then amplified the panic. “You can’t unwind the biggest carry trade the world has ever seen without breaking a few heads,” Kit Juckes, chief currency strategist at Société Générale, said. Hedge funds have routinely borrowed in yen and then bought higher-yielding Japanese and non-Japanese assets to make easy profits, but were caught out by a surge of 12% in the yen in less than a month, which in effect has made it more expensive to pay back the debt. The worst of the share sell-off took place in Japan. The Nikkei 225 index recorded its biggest ever one-day points fall, down by 4,451 points, or 12.4%, to 31,458, and the biggest percentage drop since 1987. Some of the world’s biggest brand names from Toyota to Honda suffered double-digit collapses in their shares, partly because of concerns that the stronger yen will diminish their international competitiveness. The remarkable rally in the yen, which intensified last week when the Bank of Japan lifted its base rate for only the second time in 17 years, appears to have caught out opportunistic investors. Mark Dowding, chief investment officer at BlueBay Asset Management, said he thought a number of macro funds — giant hedge funds that make bets on currencies and securities prices — “have been caught the wrong way around on a trade”. Complete article: |
Posted at 02/7/2024 16:46 by richie1218 "Legal & General shares plummeted chiefly because of the firm’s new plans to cool the pace of dividend growth.The business intends to grow 2024’s full-year dividend by 5%, as in recent years. But it intends to reduce annual growth to 2% between next year and 2027. Its reputation as a generous dividend payer is one of Legal & General’s unique selling points. So on one hand, I can understand why the market has given the news a big thumbs down. Still, I can’t help but feel that investors have overreacted here. Dividends haven’t been cut, after all. What’s more, the firm plans to balance out slower payout growth with share buybacks. It plans to kick this off with a £200m stock repurchase this year. The financial services giant looks in good shape to hit these targets too. With a Solvency II ratio of 224%, it has one of the greatest balance sheets in the sector. Investors now can get a 9.4% dividend yield for 2024 if they buy Legal & General shares. A sudden economic downturn could put pressure on that capital ratio, and in turn future dividends. But as things stand today, the firm looks in pretty good shape to me" |
Posted at 18/6/2024 19:13 by richie1218 hxxps://www.ii.co.ukincome investors kept Legal & General Group in their sights today as another big City firm backed the group’s long-term strategy in the wake of a punishing week for the shares. Supported by a projection for an 11% total distribution yield in 2025, Deutsche Bank said today it saw no reason to change its “Buy” recommendation on the FTSE 100 stalwart. It’s a view shared by retail investors as the company again topped interactive investor’s list of most traded stocks, with 90% of this morning’s activity being “Buy” orders. This surge in demand has been consistent over the past four sessions after new L&G boss Antonio Simoes tempered some of the City’s loftier expectations. The shares fell by more than 5% on the day of his much-anticipated strategy presentation, which included plans for £200 million a year of share buybacks and 2% dividend growth starting from next year. This updates the previous dividend policy of 5% under predecessor Nigel Wilson, who spurned buybacks in favour of investment. Simoes told City analysts that the combination of dividends and share buybacks meant the company intended to distribute more than what it would've otherwise with 5%. His updated earnings guidance last Wednesday also underwhelmed, prompting Deutsche Bank to lower its per share forecasts by about 6% in today’s note. However, the City firm believes the new estimates are more realistic and likely to be conservative looking out to the future. The guidance leads to the bank’s new price target of 275p, down from 300p previously but a jump of 21% from today’s level of 226p. Other changes revealed by Simoes include the consolidation of four divisions into three via the creation of a new Asset Management unit. He has also split out housebuilder Cala and other non-strategic assets with a view to these being managed for value. The strategy is underpinned by L&G’s plan to write £50-65 billion in pension risk transfer business in the UK by year-end 2028, which should increase the store of future profit and generate permanent capital to catalyse asset management growth. Targets in asset management include cumulative annualised net new revenues of £100-150 million between 2025-28. In the third unit of retail, the company is aiming for £40-50 billion of cumulative net flows as a leading provider of workplace pensions. Bank of America upgraded to a “Buy” recommendation on Thursday and said that short-term pain should lead to long-term gain. It said the investment decisions being taken now at the expense of near-term payouts were likely to lead to cash generation ramping up in the outer years of forecasts. For 2024, it highlighted a 9.3% forecast dividend yield after L&G pledged to grow this year’s payout by 5% before switching to the new rate of 2% up to 2027. The bank, which has a price target of 268p, said: “We think L&G made the right decisions for the long term, even though this led to short-term disappointment at its capital markets day.” |
Posted at 10/5/2024 12:54 by anhar Turvart: ...What I'm trying to say in basic layman terms is this IFRS 9 & 17 accounting is hard to understand for most investors and it skews the EPS & PE figures, then by skewing the figures and investors no longer understand how to read results etc they will probably avoid buying...I doubt very much that small investors understand much of insurance company accounts at all, whatever the prevailing accounting standards. Pros will though and they are all that matters in share pricing, not the likes of us who are irrelevant. For historical reasons I can read accounts but am usually not bothered to do so in great detail. That's because as purely an income investor I'm concerned primarily with divis and I don't need to delve into the minutiae for this purpose. |
Posted at 09/9/2023 16:35 by pj84 I agree with the questor view that even though the dividend yield is currently at 9% it appears to be secure and likely to continue to rise and sentiment could quickly change as we are hopefully (fingers crossed) at the peak of the current interest rate cycle and the delayed impact seems to be feeding through to the economy and people on fixed rate mortgage deals will continue to come off previous low rates every month and that will continue for a few more years yet.Extremely high dividend yields are often considered a red flag by income investors. In many cases they are assumed to indicate a company that is struggling to afford its payouts to shareholders and is therefore likely to cut its dividend before long. As with all things in the investment world, though, there are exceptions. Sometimes a high-quality company that can easily afford its dividend payments ends up trading at an unjustifiably low share price that causes its yield to spike to an unusually high level. In such situations, this column believes the risk/reward opportunity for income investors is favourably skewed. Legal & General is an obvious example. While the FTSE 100 yields 3.9pc, the diversified financial services firm has a yield of around 9pc. This is in spite of an excellent dividend record that is unmatched by many large companies. It maintained dividend payments throughout the pandemic and has increased them at an annualised rate of 4.2pc over the past four years. Its investors have thereby enjoyed above-inflation income growth, since price rises have averaged 3.5pc a year over the same period. In its half-year results, released last month, the company raised its interim dividend by 5pc and said it planned to maintain this rate of growth through to next year. Since the Bank of England expects inflation to fall to below 3pc within a year, investors in the stock should experience a further real-terms rise in their income. Legal & General’s dividend payouts are highly sustainable, as they were covered twice by profits last year. Its financial position is sound; its “solvency ratio” of 230pc is well in excess of regulatory requirements. As a result, the chances of dividends being paid at their current, or higher, level over the coming years remain good. This is in spite of the negative impact of 14 consecutive interest rate rises on the company’s investment management business. Higher interest rates have inevitably suppressed asset prices and contributed to a 10pc year-on-year decline in the amount of money L&G manages in the first half of the year. However, with interest rate rises likely to abate and the world economy’s growth prospects likely to improve, the outlook for asset managers is increasingly upbeat. Indeed, the company’s investment management operations could swing from acting as a drag on overall performance to being a key catalyst for its financial returns, and hence its share price, as its profitability is so closely linked to the fortunes of the stock market. Higher interest rates have had a far more positive impact on L&G’s pension risk transfer business as they have contributed to a reduction in pension deficits and growing demand for insurance policies that provide pension schemes with a guarantee that retirement benefits will be paid. Since only 15pc of Britain’s defined benefit pension liabilities have so far been transferred to insurers, there is significant scope for growth in this area. Clearly, the forthcoming arrival of a new chief executive represents a sizeable risk for investors; the incumbent, Sir Nigel Wilson, has overseen sound financial performance for many years. A price-to-earnings ratio of just 5.6, though, suggests that investors have more than adequately factored in the potential for strategy changes and any short-term uncertainty that may accompany them. Dividends received or due to be paid since then amount to 49pc of our purchase price, which makes our total return roughly 36pc. None the less, negative capital returns more than six years after purchase represent a disappointing outcome for a company that is delivering sound financial performance. When investors will warm to Legal & General is anyone’s guess. But an extremely high yield and an exceptionally low valuation do not dovetail with a business that has a solid record of profitability, a sound financial position and clear long-term growth potential. This column remains optimistic about the stock’s prospects and it remains a key holding in our income portfolio. Readers without a holding should consider a purchase. Questor says: buy Ticker: LGEN Share price at close: 213.6p |
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