Legal & General Share Discussion Threads

[cwa1] 11/9/2023 13:38

Electric vehicle leasing group Onto collapses after L&G pulls plug
Onto, which had raised hundreds of millions of dollars in debt and equity financing, called in administrators on Monday after failing to find a buyer, Sky News learns.

[dudishes] 11/9/2023 12:53

net, me loss. Stick with it for now.

[netcurtains] 11/9/2023 12:46

Strangely, taking into account the dividend, I've just gone into profit on this. But I'd rather be in profit without having to take into account the dividend, so still a long way to go.

[123trev] 11/9/2023 11:21

It’s more than possible if we see the last of the interest rises this month and the idea of a soft landing in the U.S however dubious we could see the FTSE have another run at 8000 before the year is out.

[jubberjim] 11/9/2023 11:08

Deutsche Bank recommendation if accompanied by motley Fool same is not I repeat NOT good news.

Lgen is going nowhere at moment.

It should be higher due to number of factors

Has declared dividend which is paid the earlier of the three

The fact that the share price along with Lgen and Phnx is struggling to make any headway is very poor.

Will wait a little while longer have enough in portfolio for now.

[netcurtains] 11/9/2023 10:46

For goodness sake yump. The entire finance sector is up and your saying that is irrelevant, LGEN rise is all due to a column in a newspaper only read by a few people???
LGEN is not a penny share - its a FTSE100 share. It takes more than a good write up in a newspaper to shift it. 😀

[yump] 11/9/2023 10:41

Perhaps this is the start of the ii’s buying back in gradually. We won’t know for a while. I’m sure they’ll tell us all when they change their strategy - as if.

[123trev] 11/9/2023 10:40

Is that short being slightly reduced with dividends landing soon?

[yump] 11/9/2023 10:35

Adjusting for sector and market rises on a particular day doesn’t mean much at all. That would presuppose a simple arbitrary mm markup to test all shares on the day. Clearly share prices individually do not match market rises and falls on a daily basis unless its just the mm’s experimenting, for a short time.

Sector and market reratings do not happen on one day.

The coincidence of a rise with a national tip is more likely significant.

“Cause and effect delusions on the stock market” would be a good book to write.

[cwa1] 11/9/2023 09:49

Deutsche Bank raises Legal & General target to 290 (275) pence - 'hold'

[dudishes] 11/9/2023 09:35

One hopes so!

[pierre oreilly] 11/9/2023 09:24

Yep, to see any underlying company rise, you first have to adjust for market and sector rises. If the market's up 5% and an individual company is up 3%, then it's an underperformance at that time.What I think is clear is that over the coming weeks and months and years, lgen will outperform the market.

[netcurtains] 11/9/2023 09:16

yump: Its clearly NOT a "questor" rise as most of the FTSE100 and FTSE250 are up...

[yump] 11/9/2023 09:12

Presume this a mini “questor”; rise.

What happens now will be revealing as 220 is clearly a resistance and the information in the market hasn’t changed.

Imo the short term downside risk (whether logical or not) is greater than the upside risk (what upside shock is going to turn the tide suddenly ?)

[123trev] 10/9/2023 11:43

Could make a big difference especially in these type of stocks where short term the sudden and rapid rise in interest rates causes problems but also future benefits a double edged sword depending on inflation.

[123trev] 10/9/2023 09:51

Early days Ron probably be down by 7% Monday lol never a good call until the money banked think I may just let it sit for a while though.

[bby88c] 09/9/2023 21:23

I might buy if the share price drops to test 182p area

[rongetsrich] 09/9/2023 19:13

Trev, you made a great call on Vanq!

[pj84] 09/9/2023 16:35

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

[netcurtains] 09/9/2023 14:31

Interesting post on itv thread

———;\——
The last few weeks have seen low volumes as many traders are aware that the next 2 weeks will determine whether the FTSE falls back to 7200 or quickly goes to 8000:
On 13/9 US inflation figures
On 14/9 ECB interest rate decision
On 15/9 Quad witching
On 20/9 UK inflation figures
On 20/9 FED interest rate decision
On 21/9 BOE interest rate decision

I'm still expecting all 3 interest rate decisions to be a pause, which should give the markets a good push higher.

[eeza] 09/9/2023 11:25

Tipped by Questor in DT.

[buywell3] 08/9/2023 15:00

An important share price looks like being tested soon IMO




free stock charts from uk.advfn.com


dyor

[thamestrader] 08/9/2023 14:41

Not noticeably, IMHO