Legal and General Shares Buy or Sell
In this article, we will examine the prospect of investing in Legal and General, highlight the recent Legal and General dividend history and examine the question of ‘should I buy Legal and General shares’.
Table of Contents
What Is Legal and General?
Legal & General is a UK financial services group, which is a FTSE 100 constituent and has operations around the world. Amongst its products and services it counts financial planning, pensions and insurance.
Should I Buy Legal and General Shares?
One of Legal and General shares’ biggest draws for investors is their income potential. At the time of writing, the Legal and General dividend yield is 9.1%, considerably higher than the wider FTSE 100’s yield of 3.5%.
As well as a high yield, Legal and General has a long history of consistently paying dividends and has increased or maintained its annual dividend every year since 2010. During this time, its payout has increased from less than 5p a share to more than 20p, as management places increasing emphasis on shareholder returns.
The chart below illustrates the Legal and General dividend history since the year 2000.
Whilst Legal and General’s potential as a dividend stock may be a key selling point, it is important to remember that dividend payments are never guaranteed. As we can see in the chart above, Legal and General slashed its dividend during the financial crisis in 2008 and it could do the same again in the future if faced with a weakening economy.
Looking beyond dividends, the demand for financial planning and retirement products is rising due to ageing populations in Legal and General’s core markets. The company’s large customer base and strong brand positions them well to benefit from this trend.
However, ongoing uncertainty over the UK economy could hamper the company in the near future. If interest rates stay high for a longer period of time, this could negatively impact investor confidence which, in turn, would hit demand for Legal and General’s products.
Legal and General Share Price Forecast
So, what do the analysts think? Of eight analysts recently asked for a Legal and General stock forecast, four gave the stock a ‘Buy’ rating and four gave the stock a ‘Hold’ rating. None rated Legal and General as a ‘Sell’.
Out of these analyst ratings, the highest Legal and General share price forecast provided a price target of 320p, whilst the lowest was 231p. The average Legal and General share price forecast was 262.25p.
How to Buy Legal and General Shares
With an investing account from Admiral Markets, you can buy shares in Legal and General as well as other FTSE 100 stocks and many more from around the world. Follow these steps in order to buy Legal and General shares:
- Open an Invest.MT5 account.
- Log in to the Dashboard.
- Open the web trading platform.
- Search for Legal & General shares and click the symbol to open a price chart.
- Enter the desired number of shares and click ‘Buy’!
Investing with Admiral Markets
With an Invest.MT5 account, you can buy shares in more than 4,500 companies and over 200 Exchange-Traded Funds (ETFs) from around the world. Click the banner below to find out more:
FAQ
Can I buy legal and general shares?
Yes. You can buy Legal and General shares with an investing account which offers access to the London Stock Exchange, such as the Invest.MT5 account from Admiral Markets.
When do legal and general pay dividends?
Legal and General currently pay dividends twice a year; an interim dividend, which is paid around September, and a final dividend, which is paid around June.
Is Legal and General a good dividend stock?
Legal and General has a good history of paying dividends, making payouts to shareholders for 25 consecutive years. At the time of writing, the stock has a dividend yield of more than 9%. However, it is important to remember that future dividends are never guaranteed.
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