Legal & General (LGEN)

[scrumpyjack]

It does all sound jolly good, BUT insurance company accounts are very opaque and, being a mean minded ex accountant, I tend also to look at the figures that can't be massaged. I am always suspicious of 'core' and 'adjusted' this that and the other - profits that leave out the inconvenient stuff in a big way raise red flags to me.

Anyway EPS fell from 7.35p to 2.89p (from which they pay a dividend of 21.36p !!!)

Net asset value fell from 239p to 226p (well not surprising if you pay a dividend of 7 times your earnings!)

I continue to hold but the above may help explain why the share price continues to look very weak.

[Charlottesquare]

It does all sound jolly good, BUT insurance company accounts are very opaque and, being a mean minded ex accountant, I tend also to look at the figures that can't be massaged. I am always suspicious of 'core' and 'adjusted' this that and the other - profits that leave out the inconvenient stuff in a big way raise red flags to me.

Anyway EPS fell from 7.35p to 2.89p (from which they pay a dividend of 21.36p !!!)

Net asset value fell from 239p to 226p (well not surprising if you pay a dividend of 7 times your earnings!)

I continue to hold but the above may help explain why the share price continues to look very weak.

Booking a circa £1 billion profit from selling the US business later this year will hopefully help the div cover

[Alaric]

I continue to hold but the above may help explain why the share price continues to look very weak.

Those holding this share for income perhaps need to be aware that they are proposing to return capital in the form of dividends. So the high dividend yield is in part at least, just a return of capital.

We stated at our Capital Markets Event that we intended to return more to shareholders and that is exactly what we are doing. Our clear capital allocation framework supports our plan to return over £5 billion over the next three years, through dividends and buybacks.

[scrumpyjack]

I only have some in my ISA. I avoid having high yield shares in my taxable account.

Some mixed views on it.
https://www.proactiveinvestors.co.uk/co ... 67795.html

[monabri]

It does all sound jolly good, BUT insurance company accounts are very opaque and, being a mean minded ex accountant, I tend also to look at the figures that can't be massaged. I am always suspicious of 'core' and 'adjusted' this that and the other - profits that leave out the inconvenient stuff in a big way raise red flags to me.

Anyway EPS fell from 7.35p to 2.89p (from which they pay a dividend of 21.36p !!!)

Net asset value fell from 239p to 226p (well not surprising if you pay a dividend of 7 times your earnings!)

I continue to hold but the above may help explain why the share price continues to look very weak.

Booking a circa £1 billion profit from selling the US business later this year will hopefully help the div cover

5917M Shares X £0.2136 = £1263 M (share qty will be lower than this due to share buyback)...so the sale profit should cover the next dividends (but might be ear marked for further buybacks ..?)

[Charlottesquare]

Booking a circa £1 billion profit from selling the US business later this year will hopefully help the div cover

5917M Shares X £0.2136 = £1263 M (share qty will be lower than this due to share buyback)...so the sale profit should cover the next dividends (but might be ear marked for further buybacks ..?)

"L&G anticipates an additional share buyback of £1.0bn following completion[3] and now expects to return the equivalent of c. 40% of its market cap to shareholders over 2025-2027 through a combination of dividends and buybacks." see upthread.

Remember they are also selling Cala so more cash generation.(Albeit chunk deferred)

You are getting some profit distributed but also some of your own money back it appears.

[monabri]

I first bought LGEN in Jan 2017 but have added numerous times since. They have paid me, to date, 42% of the total money invested and the calculated XIRR is 10.4% with an average share price of 217p. Not the best (indeed they are 12th in the XIRR stakes for individual shares) but certainly not the worst.

[idpickering]

Commencement of Share Buyback.

Legal & General Group Plc ("the Company") ("L&G") announces that it will today commence a share buyback programme for up to a maximum consideration of £500m (the "Programme"), as announced on 12 March 2025.

The Company has entered into a non-discretionary agreement with Barclays Capital Securities Limited ("Barclays") to conduct the Programme on its behalf and to make trading decisions under the Programme independently of the Company. Shares acquired by Barclays under the agreement will be purchased by Barclays as riskless principal for subsequent repurchase by the Company. All shares repurchased under the Programme will be cancelled. The purpose of the Programme is therefore to reduce the Company's share capital.

Any purchase of the Company's ordinary shares contemplated by this announcement will be executed in accordance with the Company's general authority to repurchase ordinary shares granted by its shareholders on 23 May 2024, the UK Market Abuse Regulation, the Companies Act 2006, and Chapter 12 of the Financial Conduct Authority's Listing Rules. The maximum number of shares to be acquired under the Programme is 509,136,022, being the number of shares the Company is authorised to purchase pursuant to the authority granted by shareholders at the AGM on 23 May 2024, less the shares acquired by the Company pursuant to the share buyback programme announced by the Company on 13 June 2024 which completed on 8 November 2024. The Programme will end no later than 12 September 2025.

https://www.investegate.co.uk/announcem ... ck/8776725

Ian (I hold).