soi
08 Mar 2018
Re: What a muted reaction. Good Morning.In addition to my SB spreadbet longs, one of which I closed for modest profit yesterday but have more in, bought some shares @ 260, looking medium/long term for that.Just seems decent value to me.Markets still jittery but the FTSE 100 index has made a reasonable recovery from yesterday`s lows.ATB & GLsoi
nk1999
07 Mar 2018
Broker views "...... As one of the most generous dividend payers in the FTSE 100 Index (UKX), high-yielding Legal & General (LGEN) didn't disappoint today after another well-received set of annual results.Its full-year pay-out rose another 7% to 15.35p - a figure in line with market expectations as the pensions, insurance and investment company continues to yield in the region of 6%.While market volatility has held back the shares in recent weeks, they were up 1% to 260p in post-results trading today. In fact, L&G has plenty of fans in the City who believe it should be trading at closer to 300p.There's also strong support from fund manager Neil Woodford, whose Income Focus and Equity Income funds view the company as one of their core holdings.After today's results, in which L&G grew headline profits by a bigger-than-expected 32% to £2.05 billion, Barclays Capital noted that the UK company was "building momentum and firepower".The comment on firepower relates to the £2.2 billion of excess capital over and above a 160% Solvency II ratio. This solvency figure stood at 189% at the end of 2017, compared with 171% in 2016, while L&G estimates it has since grown to 196% on the back of interest rate increases.Analyst Alan Devlin said: "While this capital is not burning a hole in Legal's pocket, we believe this gives Legal significant firepower for both organic and inorganic investment."Having seen compound annual growth in the dividend of 21% since 2009, Devlin rejected criticism in some quarters that L&G is overpaying on its dividend.He noted that today's growth in the pay-out of 7% compared with a rise in underlying earnings per share of 9% in 2017, which is broadly in line with L&G's 10% medium-term growth target.Explaining his 290p price target, Devlin added: "We think that the strong and transparent cash flows generated by L&G will support the dividend, and the company has levers to pull to protect the dividend in stress scenarios.".......[link]
tejo
07 Mar 2018
muted reaction I think that the main reason for the muted reaction is that after the big percentage gains in revenue and profit, we come to the dividend where the 7% increase which appears miserly. However, as a percentage of the eps, they may have paid too high a level in the past and I believe that keeping the increase fairly modest now, will serve them well for the future. This is a quality company, with good momentum, a very good yield and should amply reward the patient investor.
Chicken Lips
07 Mar 2018
Re: What a muted reaction. Totally Underwhelming. Didnt make the news as Rolls Royce stole the show and the SP rise today and had lots of air time. Struggling to find anything on L&G anywhere. I think even with a 100% increase in profits there would have been a shrug of the news shoulders. Seriously less than 1% rise.
peddlar
07 Mar 2018
What a muted reaction. Some quite good numbers and a great divi,you.After all this the price is moving very slowly.Perhaps later...
JimmyZoid
07 Mar 2018
Re: odd phrase -inclusive capitalism Ah! Good... I'll break a little cover here in that I work within the sector - scratch beneath the surface of too many companies and there is little substance... I'm a passionate believer in capitalism solving problems - but too many exec teams are way too short term and self interested...
pearlsasinger
07 Mar 2018
Re: odd phrase -inclusive capitalism JimmyZoidI fully agree with you.I was attempting to have a little fun withthe phrase -which I had not seen before.The first thing I consider when I make an investmentis the integrity of the senior executives/board- together with theuseful purpose of the enterprise- or otherwise.One problem arises: the existence of spin doctors in thepreparation of company trading statements and the-sometimes - lack of transparency within such communications.I was an investor in RBS - before the crash - so I am more cautious and a littlecynical these days.
marktime1231
07 Mar 2018
Re: odd phrase but I would like to think LGEN and its chief executive are good hearted. For example it seems Wilson is serious about making a contribution to solving the UK affordable housing crisis. LGIM were quick to take responsibility eg agree to pay for recladding one of the blocks it owns post-Grenfell when other landlords are passing the buck. I am sure they have faults too, difficult to be profitable without some tough business along the way.The attitude allows me to trust the veracity of accounts and the sustainability of the business in contrast to companies paying a good dividend by manipulating cash flow rightly attracting suspicion. The culture of the leaderhsip influences me as an investor, no doubt it transmits through the company. Affects me as a consumer ... for example, I might consider LGEN for an annuity or equity release because I would expect them to be fair and reasonable. Didn't they set the course for ultra low cost trackers, I am sure I had money in one a while back?Very happy this morning with my LGEN shares and surprised at the muted reaction, what is in the outlook or the mind of investors I wonder?
II Editor
07 Mar 2018
NEW ARTICLE: Income stock L&G continues to deliver "As one of the most generous dividend payers in the @GB:UKX:FTSE 100 Index, high-yielding LSE:LGEN:Legal & General didn't disappoint today after another well-received set of annual results.Its full-year pay-out rose another 7% to 15.35p - a figure ..."[link]
pearlsasinger
07 Mar 2018
"Inclusive Capitalism" I like Mr. Wilson's opening statement thatthe company model is one of "inclusive capitalism"I will use that in the pub and at dinner! If necessary.On a serious note it may attract the support of ethical- fund managers.Inclusive capitalism - the child of Responsible socialism.
IOMINVESTCOM
07 Mar 2018
Re: Results highlights LONDON (Alliance News) - Financial services provider Legal & General Group PLC on Wednesday reported record operating profit in 2017 as it nears GBP1.00 trillion of assets under management, while it has also increased its dividend.Operating profit for 2017 rose 32% to GBP2.06 billion from GBP1.56 billion in 2016, while pretax profit increased 32% to GBP2.09 billion from GBP1.58 billion, with the company also booking a one-off US tax benefit of GBP246.0 million.Legal & General's gross written premiums fell to GBP7.93 billion in 2017 from GBP10.25 billion in 2016. Total income was down to GBP40.49 billion from GBP73.47 billion in 2016, while assets under management in the Investment Management wing rose 10% to GBP983.3 billion.The company is to pay a final dividend of 11.05 pence per share compared to 10.35p in 2016. This takes the 2017 total payout to 15.35p, up 7% on 14.35p in 2016.Legal & General's solvency II coverage ratio in 2017 was 189%, compared to 171% the year before.The Legal & General Retirement business' operating profit jumped 54% to GBP1.25 billion, with Investment Management operating profit up 9% to GBP400.0 million in 2017. Operating profit for Legal & General Capital increased 6% to GBP272.0 million, and the Insurance arm's operating profit was flat at GBP303.0 million.General Insurance operating profit, however, fell 29% to GBP37.0 million due to higher than expected non-weather related household claims in the first quarter of the year.Looking ahead, Legal & General said it is confident on continuing its momentum in 2018, with the firm "well placed" for further growth in the current year.Chief Executive Nigel Wilson said: "Legal & General's strategic focus, alignment to global growth drivers and excellent execution, allowed us to deliver a record GBP2.1 billion operating profit in 2017. Our shareholders are enjoying terrific earnings per share and return on equity growth, while our 'inclusive capitalism' model ensures customers and society also benefit."We remain confident that our unique business model, strong management team, collaborative culture, and strategic focus can deliver further growth in 2018 and beyond."Shares were up 1.0% on Wednesday at a price of 260.40p each.
soi
07 Mar 2018
Re: Share Price HiA shame markets generally are in such a jittery mood.I didn`t even expect to be able to but have piled in with several long SB positions ( buy side, spreadbet )I think it will rise in time.GL Allsoi
Chicken Lips
07 Mar 2018
Share Price Muted, but at least it's not headed south yet. Markets reacting to US news so not the best day to release results.
dazurtrader
07 Mar 2018
A Core Holding - Good For Any Downturn The results show that LGEN (and the whole sector) is in a pretty good, and improving, place right now and for some time. Given the good divi I see this as a HOLD through the coming (?) crash, and thus a strong hold/weak buy.I'm keeping invested but will not top up.
IOMINVESTCOM
07 Mar 2018
Re: Results highlights Agree Soi with a yield now of 5.9% at 2.59
