Legal & General H1 2021 Results

[idpickering]

Strong financial performance –

14% growth in operating profit and 22% ROE
Strong financial performance1, now well above pre-COVID 2019 levels
• Operating profit of £1,079m, up 14% (H1 2020: £946m), with double-digit growth or higher in LGC, LGI and LGRR
• Earnings per share of 17.78p, up 21% on H1 2019 (14.74p) and up significantly on H1 2020 (4.89p)
• Profit after tax2 of £1,065m (H1 2020: £290m) and Return on equity of 22.0% (H1 2020: 6.3%)
• Solvency II coverage ratio3 of 183% (H1 2020: 173%)
• Interim dividend of 5.18p, up 5% (H1 2020: 4.93p), consistent with our stated ambition

And later;

Subsequent to 30 June 2021, the directors declared an interim dividend of 5.18 pence per ordinary share. This dividend will be paid on 20
September 2021. It will be accounted for as an appropriation of retained earnings in the year ended 31 December 2021 and is not included
as a liability in the Consolidated Balance Sheet as at 30 June 2021.

https://www.legalandgeneralgroup.com/me ... t-pack.pdf

A nod to monabri's thread on LGEN here; viewtopic.php?f=15&t=30629 but I thought the results warranted a new thread. No offence intended.

Ian.

[Arborbridge]

Nice to see a substantial increase.

LGEN are forecast to provide 4% of my income this year.


Arb.

[monabri]

The EPS estimate is well above the forecast. A nice increase in the dividend.

[Arborbridge]

Can anyone find an XD date? It was 13th August last year, but I don't see one mentioned in the results.

Arb.

[scrumpyjack]

x 12/8 pay 20/9 5.18p
already on dividenddata.co.uk

[Dod101]

Excellent. This company single handedly illustrates my emphasis on culture. It is a consistently good performer. The back ground to the increase in the dividend is solid with a great return om equity. It does not always seem to be recognised in the share price but I do not mind. I have held it for about 30 years. Wish all my shares were like it.

Dod

[Padders72]

Nice to see a substantial increase.

LGEN are forecast to provide 4% of my income this year.


Arb.

I raised an eyebrow at this, thinking that is quite some concentration until I realised the figure for me is actually 6%. LGEN is a creeper upper in terms of performance in some ways. I have only been in since a speculative punt March 2020 when it looked too cheap to ignore but I a now persuaded it is a solid hold and will only be adding going forward.

[daveh]

Nice to see a substantial increase.

LGEN are forecast to provide 4% of my income this year.


Arb.

I raised an eyebrow at this, thinking that is quite some concentration until I realised the figure for me is actually 6%. LGEN is a creeper upper in terms of performance in some ways. I have only been in since a speculative punt March 2020 when it looked too cheap to ignore but I a now persuaded it is a solid hold and will only be adding going forward.

They provided 8.5% of my income last year, but that was because they kept paying when many others didn't. It was only 5.75% in 2019. This year its down to 7.6% now, but expect it to drop back a bit more as there are still a fair few of my companies still to declare dividends payable before the end of the year. It does mean L&G won't be eligible for a top up anytime soon though.

[Arborbridge]

x 12/8 pay 20/9 5.18p
already on dividenddata.co.uk

I did check, and it wasn't.....I must have been just minutes too soon!

xd 12th - time for a topup on cheap dealing 10th.

Thanks.

[Arborbridge]

Nice to see a substantial increase.

LGEN are forecast to provide 4% of my income this year.


Arb.

I raised an eyebrow at this, thinking that is quite some concentration until I realised the figure for me is actually 6%. LGEN is a creeper upper in terms of performance in some ways. I have only been in since a speculative punt March 2020 when it looked too cheap to ignore but I a now persuaded it is a solid hold and will only be adding going forward.

But as Daveh points out, things are a bit chaotic at present so this reliable payer might drop down the percentage rankings as other companies in our HYPs pick up.

In any case, taking Dod's POV for a moment, it isn't a company I mind being a little over the top with, and pushing the boundaries a little. And it would reduce my 7.% reliance on RIO or Admiral a shade



Arb.

[Arborbridge]

x 12/8 pay 20/9 5.18p
already on dividenddata.co.uk

I did check, and it wasn't.....I must have been just minutes too soon!

xd 12th - time for a topup on cheap dealing 10th.

Thanks.

er - I realise now I was looking at advfn!

[scrumpyjack]

x 12/8 pay 20/9 5.18p
already on dividenddata.co.uk

I did check, and it wasn't.....I must have been just minutes too soon!

xd 12th - time for a topup on cheap dealing 10th.

Thanks.

er - I realise now I was looking at advfn!

Dividenddata are always very quick off the mark - well dividends is their thing!

[Dod101]

The market liked the results today, up over 3% to £2.72.

Dod

[monabri]

The market liked the results today, up over 3% to £2.72.

Dod

Still cheap imho!

[Dod101]

The market liked the results today, up over 3% to £2.72.

Dod

Still cheap imho!

Taking last year's Final plus the Interim announced today makes the yield about 6.5%. That is as you say too cheap.


Dod