Business & Investment

Are Legal & General stocks good?

At the time of writing, the Regal & General share price is approximately 270p per share. It’s not much better than it was five years ago. Since 2016, stock prices hit a high of 314p in February 2020 and a low of 157p a month later. I spent a lot of time fluctuating on both sides of 250p. But that may not seem exciting, but in my view there are reasons to prefer stocks.

What I like about stocks

This is easy for me as I have these.that is dividend.. Management was brave throughout the pandemic while maintaining dividends. That is clearly their focus. Currently, the yield on stocks is around 6.5%, which is among the highest on the FTSE 100. Still, unlike other high-yielding stocks, I don’t think Legal & General faces the same external threats.

For example, tobacco stocks have high yields to attract investors as the industry faces major challenges for public health campaigns, sin tax, laws, and especially next-generation products such as e-cigarettes. Therefore, tobacco stocks can definitely be considered a value trap.

For me, Legal & General is not a value trap. Dividends must be sustainable and there is no need to sacrifice a rise in stock prices. However, management must try to get the stock back.

The group is pushing for a workaround Retirement planning and pensions.. As we grow into a larger population, this should become an area of ​​business growth. More freedom in pensions should also help legal and general.

Not so appetizing about L & G

Paradoxically, it may also be a high dividend yield. The payout ratio may be too high, starving the cash business to invest in growth. Every company needs to work hard to stay competitive, which usually involves an investment. This may be the reason why stock prices haven’t actually risen in the last five years. Investors are not excited about the slow and steady nature of their business.

Given that Legal & General is a financial stock and in many ways tied to the UK economy, it’s not surprising that stocks are probably not falling anywhere.rival Aviva Like bank stocks that also act as UK plc agents, they have actually fallen for more than five years.

My view on legal and general stock prices

Legal & General has a stable business, a strong brand, a good management team and does not face major external challenges to its business model. It operates in a safe and stable industry and, like many other industries, does not face the turmoil.

Overall, I’m happy to be able to hold Legal & General shares for dividends. I think the economic boost on the horizon from ending the blockade can improve perceptions around the share.

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Andy Ross owns a stake in Legal & General. The Motley Fool UK does not have a position in any of the listed shares. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by considering different insights, Better investors than us.

Are Legal & General stocks good? Are Legal & General stocks good?

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