Same, roll on Persimmon dividend on Friday.
I agree it is âgoodâ.
This is not a growth stock - and I wouldnât expect any huge changes in share price (it has wobbled around 2.50 since 2015). Yes it has displayed the occasional exuberance but no steady growth for many years now. It may change in the future of course âŚ
I think there was room for growth pre-pandemic as they were on an incline and running at ÂŁ3.18. Then pandemic hit them down to ÂŁ1.80ish (big dump in the middle):
If they recover back to that then itâs almost ÂŁ1 increase from todayâs price per share, not bad. But youâre right, these are primarily a div share for most.
It might be useful for you to find out why there was that little increase just before the pandemic. Your chart shows it is not a growth stock but nevertheless it is very possible that total returns will improve along with the core business fundamentals. So on a total return basis, which is what matters to me, I can see why one would want to hold this one for 5+ years.
Youâre right, I am mis-using âgrowthâ in place of âreturnâ - weâve just had a baby and I had 3 hours sleep last night
I humbly request your forgiveness.
I am not sure why there was that incline, but there was one just before it too, so while not a concrete indication, I have taken a punt that they will be more. The incline above â7 daysâ and the one just before â1 yrâ both happened at the end of the calendar year, so my finger and toes are crossed for the same again come Dec for a âbetterâ indication. Time will tellâŚ
I know the at pain! Hasnât stopped me doing it again though!
Me neither - this is my 3rd!
@MikeyP247
I bought at 166.06 (not the bottom) during the crash sold recently for a 69% gain day before exdivided and bought back on exdivided day. 15p cheaper dividend was 13.27p. didnât take the profit as a capital gain instead bought back 4% more shares but for tax purposes it was a capital gain not an income. Down at the moment but that doesnât take into account original purchase price.
Countered in the UK by a reduction in payments of annuities.
Pretty standard for legal and general to have a run up for no apparent reason followed by heavy profit taking. Happened again post pandemic almost reached the same price 309p to be precise.
Debt might be the reason
I wasnât personally looking for reasons for that increase - I was encouraging the OP if he considered himself to be an investor to think more about the business. Another way I could have said what I said is âShares go up and down. Just because a share was price X before it doesnât mean it will get there again any time soon if at all.â IMO as an investor it is better to make buying decisions on what one understands about the businesses prospects, a trader views these things differently.
Other than covid, L&G have increased there profits by about 7-8% a year. Dividend cover was around 1.85 (Aviva was 1.2)
For the previous 5 year plan dividends were incresed 7% a year. For this 5 year plan, first year nothing there after 5%.
The reduction was to facilitate greater growth.
Share price has fallen over the last 5 years by 9%.
I find it difficult to see how L&G share price wonât rise significantly in the future. Purchased now gives you a large income which will increse almost in line with inflation.
I think i am looking at significant share price growth over next 18 months specially if inflation remains high.
As an aside L&G beta is 1.5 over 5 years.
If the market goes up 10% it goes up 15% and vice versa. I am not sure i agree with it but that what analyst say.
I just noticed i have already said about the beta but i will not delete as it maybe important.
Bought ÂŁ4,000 worth in my sipp (H&L) so that statement didnât last. At 240.6p
Generalisation
The higher the dividend the lower the share price growth AND dividend growth.
And vice versa. It doesnât appear to apply to legal and general.
Very good dividend growth and profit growth.
I would expect a significant share price growth over the next 18 months this is entirely based on profit/dividend increases and a lack of share price growth. Minus 5% over 5 years.
You mean you sold up?
@EquityInvestor
No?
I bought another ÂŁ4,000 worth 10 days ago. I think i have to much in legal and generalâŚbut it appears to be bargain.
Ah Iâm with you now basically you couldnât resist? But surely buying at ÂŁ1.66 compared to what ÂŁ2.40 thatâs a risky increase
Not buying LGEN until I see the impact of the new IFRS 17 accounting practices reflected in their balance sheet in 2023. IMO life insurers will get repriced when they have to all report their future liabilities using a consistent discount model, unlike in IFRS 4 when they could use any discount model they saw fit. So yes LGEN currently looks cheap by traditional value metrics, but come 2023 I expect these metrics to change drastically, although I think management will handle it quite well, Iâm short whole life insurance sector. DYOR
166 was the price during the crash, the normal overreaction.
Buying at 240p still gives me a dividend of 7.5% and I think the shares are grossly undervalued.
I base some of my views on dividend cover. Which is set to rise.
Couple of things to consider with Legal and General.
Debt is quite high at over ÂŁ20 billion and increasing!
Negative operating cash flow, can they cover the debt?