LGEN Confirms divi

[monabri]

Legal & General confirms its current intention to pay final 2019 dividend
(just released a few mins ago)

https://www.londonstockexchange.com/exc ... 91640.html


The Board of Legal & General plc has given careful consideration to the PRA's letter of 31 March.

The Board continues to pay close attention to the need to protect its customers and employees at this difficult time. The Board has carefully considered the need to act prudently in maintaining safety and soundness, and in so doing ensure that Legal & General plays its full part in supporting the real economy. It also recognises the importance of dividend income to many institutional and retail shareholders, particularly in the current environment.

The Board observes that, notwithstanding significant market volatility, the Group's Solvency position remains robust.

Whilst the Board will continue to monitor events, its current intention is to confirm its previous recommendation for a final dividend of 12.64p (2018: 11.82p) giving a full year dividend of 17.57p (2018: 16.42p), 7% higher than 2018.

[monabri]

I just fired off a quick email to Mr Houghton at LGEN Investors Relations thanking the board for their consideration of their shareholders regarding the divi.

[Dod101]

scrumpyjack more or less wrote that for them on 1 April. Very good but to be honest it does not get us very much further but at least the company has got its position well set out. If push comes to shove though, Sam Bully Woods can I suppose still stop them.

Dod

[floyd3592]

Brilliant news, good for L&G! Wish HSBC had as much backbone. Off to amend me dividends spreadsheet!

[AJC5001]

Legal & General confirms its current intention to pay final 2019 dividend
(just released a few mins ago)

https://www.londonstockexchange.com/exc ... 91640.html

This was released at 16:49, after the market had closed on the last trading day of the tax year, during which the share price fell by 10.05%.

I wonder what thinking went into the decision on this timing.

Would there be an expectation of a price recovery next Monday?

Adrian

[monabri]

Legal & General confirms its current intention to pay final 2019 dividend
(just released a few mins ago)

https://www.londonstockexchange.com/exc ... 91640.html

This was released at 16:49, after the market had closed on the last trading day of the tax year, during which the share price fell by 10.05%.

I wonder what thinking went into the decision on this timing.

Would there be an expectation of a price recovery next Monday?

Adrian

I was thinking it was also a message to Marshall Wace LLP & "friends". Personally a shorting level of 0.5% (visible) doesn't unduly concern me. Maybe they wanted to nip it in the bud but really, I guess they were responding positively to my email...

I would hazard that many retail investors are going to be looking at the yield on offer, current share price relative to a month or so ago, confirmation of a dividednd...thus I would hazard a guess that the price will rise ..unless of course Marshall Wace and others get involved.

[scrumpyjack]

scrumpyjack more or less wrote that for them on 1 April. Very good but to be honest it does not get us very much further but at least the company has got its position well set out. If push comes to shove though, Sam Bully Woods can I suppose still stop them.

Dod

Also this should set the tone for other insurers (Aviva, M&G, Pru etc). Interesting that the Times this morning says LGEN wouldn't have made this announcement without pre-clearing the decision with the regulators so the regulators are clearly content that the insurers should pay their dividends.

https://www.thetimes.co.uk/edition/busi ... -fnmh76ldh

[Dod101]

scrumpyjack more or less wrote that for them on 1 April. Very good but to be honest it does not get us very much further but at least the company has got its position well set out. If push comes to shove though, Sam Bully Woods can I suppose still stop them.

Dod

Also this should set the tone for other insurers (Aviva, M&G, Pru etc). Interesting that the Times this morning says LGEN wouldn't have made this announcement without pre-clearing the decision with the regulators so the regulators are clearly content that the insurers should pay their dividends.

https://www.thetimes.co.uk/edition/busi ... -fnmh76ldh

Thanks for that. I have not read my Times as yet this morning. I hope that is the case. That would be the first positive news for some time.

Dod

[Howard]

Am I right in thinking that insurers must lead the way in continuing to pay dividends?

I know that this is an over-simplified statement, but for companies like L & G dividend income is vital. (Along with bonds etc this is a major income stream).

If they don't set an example to other companies by continuing payments they may be writing their own death warrant as a major part of their income is in dividends from their investments?

regards

Howard

[dealtn]

Am I right in thinking that insurers must lead the way in continuing to pay dividends?

I know that this is an over-simplified statement, but for companies like L & G dividend income is vital. (Along with bonds etc this is a major income stream).

If they don't set an example to other companies by continuing payments they may be writing their own death warrant as a major part of their income is in dividends from their investments?

regards

Howard

They don't need income, they just need the ability to meet their commitments as they fall due. Dividend income is a source for that, but they can meet their obligations from other income, and selling assets. It is easier for them to do this if dividend income continues though.

[monabri]

Any thoughts on the response ( dividend payments to continue) of the likes of Phoenix Gp & Chesnara?

[Dod101]

Any thoughts on the response ( dividend payments to continue) of the likes of Phoenix Gp & Chesnara?

I have not seen anything from Phoenix but I know that Chesnara is proposing a dividend increase of 3%. I would of course very much welcome dividends from all three of Phoenix, Chesnara and Legal & General but I am certainly not counting on them. A lot can happen between now and the payment date of some time in June and maybe even Sam Bully Woods will put in his boot again. I see in the Times this morning that Patrick Hosking is making a good case for L & G to suspend its dividend and of course there is merit in that in these 'uncertain times'.

I doubt that Howard's point is really valid and I think that L & G simply wants to do what HSBC wanted and that is to keep its shareholders happy.

Dod

[88V8]

[... in the Times this morning that Patrick Hosking is making a good case...

A wet who has little sympathy for the private investor.
L&G is paddling its own canoe and so it should.

I hold Phoenix and Chesnara and hope they too will make their own decision on their individual merits.

V8