LGGNF - Legal & General: 8.5% Yield With Growing And Sustainable Dividend
2024-03-10 07:44:55 ET
Summary
- Legal & General is an attractive investment with a high yield and sustainable and growing dividends.
- Its main business is pension risk transfers with the record-beating transaction volume.
- The risk of a dwindling supply of PRT deals appears overblown.
- LGEN is undervalued in line with the UK stock market and can add capital appreciation to an almost 9% forward yield.
UK's Legal & General Group ( OTCPK:LGGNY ) ( OTCPK:LGGNF ) (LGEN on LSE) yields close to ~8.5% at the time of writing. The company is committed to raising its dividend by 5% in both 2023 (the final part is payable in May 2024) and 2024. Is this trend sustainable in the longer term? And can we count on capital appreciation in addition to the generous dividend? These are the two main topics of this post....
Legal & General: 8.5% Yield With Growing And Sustainable Dividend