Legal & General Share Discussion Threads

[1knocker] 16/6/2024 12:38

Yump, if you buy an income share, you are buying an income stream. If that income grows, all other things being equal the cost of purchasing it (the share price) should rise to reflect the increasing value of the income stream. The converse expectation applies in the case of falling profits and a reducing income stream.

Take a look at the dividend paid 10 years ago, and the dividend which is currently being paid, and you may begin to get a glimmer of understanding as to why there are posters here who are disappointed that the share price has remained flat.

It really is not very difficult to get your head around if you have a basic understanding of the principles underlying the valuation of income producing assets.

[denziiil] 16/6/2024 11:36

Sustainable Growth, Sharper Focus, Enhanced Returns.Heil Simoes.

[denziiil] 16/6/2024 11:32

Would love to see 210, but looking at the recent lowsof 200p, I cant help but think thatbthey were brought about by market panic across the board as US banks in particular were going pop.Banks caught short with quick success of bank rate rises, left them holding nasty book to market losses on corporate and bank bonds. This was fine until people started removing cash, and here we had a potential good old fashioned bank run.Inflation is way down, banks and financial institutions have balanced their positions and we are not 2022, 2023 anymore.Why the 10% or so drop last week, well im not really sure it was justified, any thoughts other than capital markets anouncement was eye wateringly dull.Simoes can do better 4/10.Price is looking good right now. Maybe low 220s for a steel. GLA

[richie1218] 16/6/2024 11:23

I would have thought that the "trading range" could possibly move up slightly to the 220-260 range now that the divided strategy has been confirmed for the next four years and we know what it's going to be.
I know the divided is never guaranteed but at least if investors are happy to hopefully get 9%+ yoy for the foreseeable then it sort of give you some peace of mind which imo is worth a bit of an uplift in the tr. gla

[gswredland] 16/6/2024 10:07

Seems to stuck in a medium term trading range of 210-250
210 would be perfect to go long if it goes that low

[skinny] 16/6/2024 09:45

tornado - a more manageable version of you link :-



:-)

[mcunliffe1] 16/6/2024 09:29

Interesting number of posts on the BATS thread about cash holdings in ISA trading accounts and the relative safety of such about the £85,000 threshold.

May be worth checking if your cash holdings are increasing because of the turmoil resulting from the markets reaction to the probable election results.

I have a 65/35 investments/cash ratio in my ii SIPP just now having just recently bought andother £10k LGEN :-(

[tornado12] 15/6/2024 12:58

Confirms people are investing more & more in cash. 50% of my holdings are in Cash and rest in S&S

hxxps://urldefense.com/v3/__hxxps://mol.im/a/13480269__;!!AWBpCeCd!ZlAqpMuowkBeqFe1j9BNIAp3eD8TZyKRXKcNr5jNBGxpb7zyfTZpD-6elCBx98zHngdvul0WvREjKSWgIPurpaRbdHugJg$

[richie1218] 15/6/2024 11:05

Other fallers in today’s lacklustre blue-chip session included Legal & General Group
LGEN 0.45%, which dropped another 2.9p to 226.9p amid the City’s underwhelmed response to the capital return plans of new chief executive Antonio Simoes.

The shares fell by more than 5% yesterday as he forecast £200 million a year of share buybacks and 2% dividend growth from this year. This replaces the previous dividend policy of 5% under predecessor Nigel Wilson, who spurned buybacks in favour of investment.

UBS today highlighted L&G's growth ambitions in high margin private assets and infrastructure as one of the most interesting developments in yesterday’s strategy update.

It said: “L&G's ambition to grow private assets from £48 billion to £85 billion by 2028, and the increased near-term cost to achieve this, make this element of the strategy key for L&G's long-term re-rating.”

UBS cut its earnings forecasts and price target to 240p, whereas Bank of America has upgraded L&G to a “Buy” recommendation with a 268p price objective.

It points out that L&G is investing in growth, which should lead to cash generation ramping up in the outer years at the expense of near-term payouts — albeit with a 9.3% dividend yield projected for 2024.

The bank 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 yesterday.

“We think the weakness more than reflects the long-term nature of L&G's investment thesis and leave a stock with market-leading operations and attractive long-term growth prospects.”

[tornado12] 15/6/2024 10:26

H1 results 7/8 ; ex divi 22/8 ; payment date 27/9 ; …. Hoping for positive H1 results 👍

[jubberjim] 15/6/2024 08:04

Have had to adjust my upside target to 280 down from 307

Lamentable performance from our new CEO

I contrast this with Amanda Blanc Simoes should maybe pay attention to how Aviva have gone about their business

This enough humble pie for you all

Good luck

[spud] 14/6/2024 19:17

She always reminds me of a Caramac bar - Ginger in appearance with a gritty and overly sweet aftertaste.And I used to like Caramacs. spud

[mcunliffe1] 14/6/2024 17:45

Nah! Angela is my kind o' gal. Tasty! Feisty.

[adejuk] 14/6/2024 17:44

the more there is, the more there is to love.
good shabbos

[adejuk] 14/6/2024 17:39

rr is gorgeous

[spud] 14/6/2024 16:35

Skinny calling RR fat? I'm sure there's irony there somewhere.

Lip up fatty!

spud

[mcunliffe1] 14/6/2024 16:28

Skinny: how dare you diss Rachel Reeves. Give her time ;-)

[123trev] 14/6/2024 16:22

lol,colonel maybe do a dad’s army caption for the guys on the serious thread something like “don’t panic don’t panic mr mannering.

[tuftymatt] 14/6/2024 15:40

Some good posts today about remaining invested / using this dip as a top up opportunity from a long term perspective.

Sure it's not great going back to roughly where we were a year ago, if you are a seller, but the yield is solid and as a long term holder it's a great chance to add on what will be considered cheap in the coming years.

Good luck all 👍🏻

[skinny] 14/6/2024 15:26

The fat lady hasn't sung yet!

[fionascott1234] 14/6/2024 15:24

Threatening to be up a halfpenny for the day.

[qg holdings] 14/6/2024 15:02

Exactly.

The whole UK finance/fincap sector is grossly undervalued. I have been spreading out some of my undeployed capital ahead of the BOE decision. Nothing in the Labour manifesto or pre election chatter to suggest they are so stupid as to target the only sector we as a nation have a comparative advantage in.

Obviously at 225p LGEN is a buy. I am in and will not be selling for anything less than 330p. Handsome dividend in the mean time. Have a wonderful weekend.

[contrarian joe] 14/6/2024 14:26

Interest rate expectations can change in a heart beat,rince & repeat.Short dated bonds are paying more than long dated (inverted), make your own minds up as to whether that means the R word.Ten year returns from LGen have returned 5%, buying them down here should improve that return if the future is much the same as the past.

[tornado12] 14/6/2024 13:44

predicting the market has always been challenging, and once again we see movements that were not obvious 2 weeks ago. The interest rates holding high for longer and looking for only small reduction in 2024 is a big negative for equity market and financial impact. However, if the investor has a solid base for income and are not distressed seller of capital, then its business as usual looking to add when funds are available. I was already thinking not to add in LGEN when share price reached north 260p, but now it looks again in purchasing range. Keeping the faith for income is my key priority with my average yield now at 9,6% GLA