Legal & General Share Discussion Threads

[williamcooper104] 10/8/2022 09:39

That's more like it

[montyhedge] 10/8/2022 09:38

I would have thought more like 350p these are looking good.

[cwa1] 10/8/2022 08:24

* Legal & General Group Plc LGEN.L : Credit Suisse raises target price to 315p from 300p


* Legal & General Group Plc LGEN.L : JP Morgan raises target price to 375p from 365p

[unastubbs] 10/8/2022 04:10

Lex in the FT today

[coxsmn] 09/8/2022 21:26

I've been doing similar recently.

[williamcooper104] 09/8/2022 21:01

Something you won't read in the LG results "The cost of living fuel poverty crisis isn't going to exactly be bad for our capital position"

[williamcooper104] 09/8/2022 20:24

Tempted to trim PHNX to add a little more to LGEN (I am still bullish PHNX just more so here)

[coxsmn] 09/8/2022 19:53

Analysts at Bank of America said: "L&G is firing on all cylinders, with each business unit delivering impressive results." They added that the company is in "great shape and well-prepared for any macro challenges this winter brings". 

[coxsmn] 09/8/2022 18:35

https://www.investorschronicle.co.uk/news/2022/08/09/legal-general-rides-out-turbulence/

[williamcooper104] 09/8/2022 16:23

Investment trusts are great - though the equity income trusts often hold a spread of higher yield big caps - always thought cheaper to just do that myself - like a trust that does something I can't easily do

[williamcooper104] 09/8/2022 16:20

I didn't used to like the miners because of their balance sheets - but they are mostly now rock solid on that front There's not necessarily anything wrong with a high and vulnerable yield so long as you know it is and plan accordingly

[rcturner2] 09/8/2022 15:12

Investment trusts are always worth a mention when it comes to income via dividends. There are many trusts paying good income that don't have the company specific risk of a cut to the dividend.

[unastubbs] 09/8/2022 14:58

nothing's gone wrong, it's had a strong run in to the results, that's all.

[marktime1231] 09/8/2022 14:44

Widening jaws between distributable profits and distribution, accumulating proprietary capital and surplus reserves. Will hit 2024 growth targets based on built-in trading run rate and confident outlook eg without trying too hard.

Increasing gap between share price and fair value. Despite analyst upratings.

No problems with the leadership, business strategy, execution and performance, conservative attitude; no real complaint with the dividend where it has been emphasised how securely covered it is and will be, still top drawer albeit growing slower now than inflation.

So what is wrong? Any clues in the q & a, will be looking at the transcript in due course. Maybe nothing is wrong, we just have to be patient for the share price to climb.

[geardown107] 09/8/2022 14:32

Or, you could work out what income you want, at present yields then over-do it by 10-15% and so build a cushion? You make a plan so you have a plan to change.

[anhar] 09/8/2022 13:19

Agreed, it's been my chosen strategy for decades. I depend upon my port income which is now a lot larger than I need so I reinvest any surplus.

My approach is to have some core holdings such as LGEN which I'll prob never sell, (never say never) and other lower quality (imo) shares to create wide diversification which is absolutely vital to this strat though I stick with big caps. The non-core I'm more likely to sell very occasionally but I'm not a trader. I only buy shares at all for their divis and have little interest in capital fluctuations.

Despite the volatility of miners' divis mentioned above, such as RIO and BHP in my case, I treat them as core because I've found over decades that they deliver outstanding income, on average, despite the bum years.

[pierre oreilly] 09/8/2022 13:12

I didn't say it was easy or without risk - nothing ever is. It was just a possible aspiration for many people and, imv, a much better aspiration than buy low sell high (which is even more difficult to support retirement) and which is the more predominant aspiration.

And built into a 50k tax free income stream is the possibility of a 50% divi cut without too serious consequences (i assume those trying this have already dispensed with mortgages, kids and other high cost items).

[williamcooper104] 09/8/2022 13:11

High yielding miners, housebuilders, high yield cyclicals, are guaranteed to cut their dividends in a recession Others much less likely - eg infrastructure trusts (divi cuts could come in some renewable trusts if power prices materially fall but we won't worry too much about that) Always need income reserves

[anhar] 09/8/2022 13:03

...Aim to get 5k divis pa with this one, do the same for 9 more shares and then retire with a growing income stream. Tax free if you do it in an isa.

No need to worry about the price - it's the income stream which is important to serious investors.

Whilst I agree with this and have been doing just that since retiring long ago, and even long before, it never works out with a smooothly growing income stream because there are periods when many companies suspend or cut divis, even the highest quality shares. This happens in recessions and more recently during the pandemic. Portfolio income will recover in time but it does mean that there are almost certainly going to be lean years when there is a fall. I've seen a 30% drop in total income year on year during a financial crisis such as the late 2000s. Even the normally stalwart LGEN cut its divi back then.

So if you're going to rely wholly or largely on divi income from a port of individual shares, you need a buffer to wait out the lean times cos it is not a smooth ride over the years.

[pierre oreilly] 09/8/2022 12:52

5% inc in high divi. Can't get better than that.

Aim to get 5k divis pa with this one, do the same for 9 more shares and then retire with a growing income stream. Tax free if you do it in an isa.

No need to worry about the price - it's the income stream which is important to serious investors.

[geardown107] 09/8/2022 11:47

It's sentiment, nothing to do with profit taking. You will see the same thing for MNG and AV. this week as well.

[woodhawk] 09/8/2022 11:21

Short term profit takers after recent run. What's new? Patience usually pays the best over time.