Legal & General Group shares go to dividends on April 24, is it time to obtain that 9%yield?

Legal and General Group (LSE: LGEN) The shares become ex dividement on April 24. As someone with great participation in high performance Ftse 100 Stock, the date is marked on my calendar.

Personally, I will not hurry to buy more before the deadline, but only because I already have a large part. In addition, buying just before an ex -dividend appointment is not always a victory. The price of shares generally falls for the value of the dividend in the day, so investors do not receive something for anything. Even so, for long -term investors looking to take a position, today it can be a good time to consider buying.

As an insurer, pensions and asset management firm, Legal & General is naturally exposed to stock market volatility. Compared to others in the sector, it remains tolerably well. The shares have dropped around 6% during the last month and approximately 7% year after year. It is not ideal, but just a disaster in the current climate.

The price of legal and general actions has been diverted from the side for years. What makes it highlight is that the delicious final yields of 9.02%, approximately twice what would obtain from the bonds or savings accounts. The difference is that my capital is at risk. More concerns about whether such a generous payment can be maintained.

Is this ftse stock a bargain today?

The results of the full year in March were reassuring. The group confirmed a shares of £ 500 million shares by 2025, part of a broader plan to return more than 5 billion to the shareholders in three years. That is approximately 40% of its market capitalization. The compensation is that the annual dividend growth will decrease from around 5% to 2%. Given the high performance, I would feel relieved if they succeeded.

A few weeks ago, he would have said that the dividend looked quite solid. Today, I am a little more cautious. As commercial wars market, it is not known what follows. The dividend cover is also thin in only 1.1. Another concern is that three years of sliding profits per action have increased the price / profits ratio to an amazing 80.

Legal & General is expanding in the United States. In February, he announced an agreement of £ 2.3 billion with Meiji Yasuda to sell its United States protection business and launch a joint company focused on pension risk and asset management. That caused some emotion, although today's madness can take away the advantage.

I can see why some investors could consider buying the newly out. The strong generation of the company, the solid balance and the clear strategy make it one of the most comforting positions in my portfolio at this time. Although, there is not much competition on that front at this time!

The 16 analysts that track the shares have an average price of 12 months of just under 266p. That is more than 12% above the 237p today. Add the dividend, and total potential performance is crawled above 20%. That sounds great, but in this market the forecasts are more weak than ever. I would be delighted to get that kind of return from here.

Even so, my dividend lands on June 5, with a value of 15.36p for every action I have. I will reinvest it directly in legal and general. And I will continue doing that every six months for years, decades if I'm lucky. I am crossing my fingers that one day, the price of shares also results in life.