UPDATE: Legal & General’s stock is making headlines today, as analysts predict a robust growth in dividends over the next few years. Investors are encouraged to consider this opportunity as the company prepares for a 2% annual dividend increase from 2025 to 2027.
The latest reports reveal that Legal & General’s dividend yield is currently a staggering 8.7%, positioning it as the highest-yielding stock on the FTSE 100. This surge comes after the company successfully navigated challenges during the 2009 financial crisis and maintained its payouts during the pandemic.
Legal & General’s solid footing in the pension risk transfer (PRT) market is a significant factor in its projected success. The company has recently taken over management of the BP and Ford pension schemes, which collectively hold £6.2 billion in assets. Industry experts expect that, over the next decade, £1 trillion of funds will be secured by insurers across the UK, US, and Canada, enhancing Legal & General’s growth potential.
Despite a 4% drop in share price since November 2020, the company has secured one-third of the 299 PRT transactions in 2024, including 14 deals worth over £1 billion. This solid reputation is helping the company win lucrative new business, igniting interest among income investors.
While Legal & General remains a favored choice, there are other lucrative options available. Currently, 10 stocks on the FTSE 100 are offering returns exceeding 5.5%, surpassing high-interest savings accounts. Furthermore, 13 stocks on the FTSE 250 are providing yields higher than Legal & General, particularly within the renewable energy sector.
Investors are urged to act quickly as these opportunities may not last long. Legal & General’s impressive dividend yield and market position are attracting attention, making it essential for income investors to evaluate their options carefully.
As Mark Rogers, a noted investing expert, states, “Now is a pivotal moment for investors to explore standout stocks, including Legal & General.”
For those looking to enhance their portfolios, this is an urgent call to action. With a wealth of options available, it’s crucial to stay informed and act swiftly to capitalize on these promising developments in the stock market.
Stay tuned for further updates as Legal & General continues to shape the landscape of passive income investing.
