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Legal & General: One Of The Best 6.5% Yielding Blue-Chips You've Never Heard Of


  • Legal & General was founded in 1836 in London and is a leading UK financial services provider, offering life insurance, pensions, retirement and investment services.
  • LGGNY has $1.73 trillion in assets and $4.2 trillion in assets under management.
  • LGGNY is as potential good buy right now, about 22% undervalued, and closing in on strong buy at 25% discount.
  • This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Learn More »

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One of the great things about stock investing is that you can look all over the world to find great opportunities.

Just a few weeks ago I was in Paris and Barcelona meeting with investors and


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This article was written by

Brad Thomas profile picture

Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, with his team of 10 analysts, runs the investing group iREIT® on Alpha, which covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President. Learn more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of LGGNY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (153)

Sorry also now ex-dividend for one of the two payments…part of the reason for sharp drop last week.
For those interested in this stock, it’s again in one of its quite regular drops. NOW YIELDING 7% + … recent divi raise. Time to start nibbling/adding if interested and if you missed large but short lived drop in early March. Have a look. Pays out twice a year remember not x 4 per usual US stocks. 👍🏻
Brad Thomas profile picture
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Paperone75 profile picture
The article is too long, confusing and full of unuseful things. But LG is really a great company and a must-hold stock for every portfolio. The yield is fantastic and safe, and the share price is quite volatile, so you can even trade it with some luck (I built my position by buying under 200 pence).
Barton's Global Market Trends profile picture
@Paperone75 I was thinking the same thing. Information dump, replete with ESG bumpf.
Will104 profile picture

PHNX worth a look too
Paperone75 profile picture
@Will104 I don't find any ticker phnx
Price to Book? Absolute and relative, always a good starting point in assessing insurance company value. imo.
Brad Thomas profile picture
Will Omega Healthcare Investors Enter The M&A Game?

WSLegend profile picture
Difference between LGGNY and LGGNF?
@WSLegend LGGNY is the US ADR that owns 5 shares of LGGNF
Have owned before, not right now, but looking to get back in on next pullback opportunity. Thanks for the write-up, much appreciated as usual.
monkey's uncle profile picture
@pdrozin Is this the kind of pullback you were looking for?
@monkey's uncle Certainly getting attractive. Want to see how much exposure they may have to Ukraine-Russia, and looking for an entry of about $15 which is where I bought in the last time and should have not sold. Great income stream! Thank you for the comment!
Paperone75 profile picture
@pdrozin Under 2 pounds it's a great entry point
I’m a UK based investor. Legal and general is genuinely an amazing investment. Had it for years, consistently pays 6% and hasn’t cut since 2008 crash. The growth is very marginal but the growth is still there.

Really safe long term stock. Not exciting but by god gets the job done.
Im a UK investor. Held L&G since 2014 from my initial foray into developing a DG portfolio from scratch. Added progressively over the years. Its definitely not a growth stock - that is very obvious from the charts and the share price. It is absolutely a dividend stock with progressive growth over the years. Its very big in Asset Management, low cost etfs, employee pension provision, pension liability transfer and infrastructure. To give a good flavour, its current divi is still over 6%, paid twice per year (so different from most US stocks) What is worth noting is that L&G went against the government and Bank of England and refused to suspend its divi thru the COVID crisis. Trust me that is a very big deal in the UK! Others relented (see Aviva) Its a very well regarded company. Its dividend been safe through thick and thin and well hugely well regarded in its chosen areas of focus. For a US investor, easy to dismiss given scope of US offerings. I would not. Pandemic aside c 7% divi growth prior 3 years and from a high base. Buy it on the regular dips. Now my second highest holding behind ABBV and my single stock risk limits alone stop me buying more - I'm a little too conservative probably. UK stock market has been awful last 5 years - I'm now 37% in USA stocks despite currency issue on income and capital - but would not sell L&G. Take a look US folk, a hidden gem and there are very few in the FTSE100!
I just flew out of UK yesterday after being there a couple of weeks. Country has gone mental and all you hear is green propaganda and covid scaremongering. I mean literally every news paper is full of NHS adverts and BBC/Sky News devoting hours a day to green scaremongering. People in UK are like sheep compared to US where we ask questions. Johnson has turned into a liberal and is not a fiscal conservative. His leveling up agenda is in reality going to drag everyone down. If UK stays on this path they will have to raise taxes again on workers and also find a way to suck more money out of UK based companies. This is a horrible scenario for UK based/listed companies.

Legal and General is a good company right now as Brad explains but personally I find the UK at this moment investable. Brexit has not created the low tax, low regulation environment promised.
Will104 profile picture

No great surprise, Johnson is a show man and totally incompetent as a prime minister

Brexit was always going to be a s show; was never ever going to be a low tax low reg outcome - was about closing the country of not opening it up to competition; especially immigration (I digress but the only good thing that’ll come out of brexit is a United Ireland - so it’s not all bad :)

Post the referendum I rode the currency down holding 90 percent dollar assets - however the only two UK stocks I held throughout were L&G and BBOX (a logistics REIT/developer)
@Will104 Is it not that UK REIT's held by foreigners has a withholding tax?
Will104 profile picture

There’s a withholding tax on all UK REITs that’s suffered by everyone - but if you hold it in a tax free retirement account in the U.K. then you don’t suffer it

Not sure if you can avoid it if you own it in a U.S. pension account - I avoid US WHT when I hold via my pension
This stock is for a massive investment and insurance company.

Been around for donkeys years. But it will only be a dividend stock. Look back at 10 years. Trading at its highest.

Its a strong company with many opportunities over the last number of years to trade higher.

Good yield
Legal & General might get you some looks if people here you talking about it. Sounds like it could be an adult site.
@wakagirlx very funny this. L&G is about as well known name in the UK as it can get...well for an insurance company I mean! Brand recognition and longevity mean a lot. See my separate comment.
2bears profile picture
Does it have regular ex dividend dates and if so what are they?
@2bears pays out twice a year - c1/3 Sept and c 2/3 in May with ex div about 6 weeks prior to pay date
Well guys, you have made an endless presentation of the company but managed to miss the fact that you are stating in $dollars the numbers that were presented in Pounds resulting in a serious misstatement of the size and value of the company.
@mrfrugal that’s just the beginning of this very detailed narration, this investment will be treated as an ADR for which there is a processing fee, in addition to a commission when that returns locally, and foreign taxes. Most overseas corporations that pay dividends pay them annually or semi annually, monthly or quarterly is a rarity.
Dividend Pro profile picture

Oh, I have heard of it all right. I will distill the dozens of pages above into one poignant fact. It’s at the same price now it was back in 2013. You made zero capital appreciation in 8 years. Same $20 handle. A real winner.

Nothing to like here, as with most UK stocks.

Throwing darts at a dart board is another way to pick stocks.
Brad Thomas profile picture
@Dividend Pro

My dart throwing capabilities are not too shabby...

~25% annual returns since 2013 (40+ stocks)

what's in your wallet bro??
Dividend Pro profile picture
Hmmm. Those are very good returns, if true.
In fact, extremely rare to be that good, even compared against word’s most well known investors like Buffet, Icahn, etc.

And even better than mine :)

We will compare how this one grows for you.

@brad Thomas
Brad Thomas profile picture
@Dividend Pro Thanks... The small cap portfolio has crushed it...returning over 40% per year since Jan 2016. Our top pick in 2021 returned over 160%!!! Try the 2-week free trial:


Happy Holidays!
jbourvic profile picture
I believe Schwab has just announced that they are introducing a $6 commission for OTC stocks in 2022. So that would put small investors who like to DCA into a stock far behind on what the dividend pays out. If it is like some of the better known US DKs and some of the excellent CEFs, perhaps sticking with brokers offering share slices or dollar trading might be better. I know this statement is an outlier to your post (which is excellent), but some people, like me, have to be careful of HOW we invest, not just where or what we invest in.
Brad Thomas profile picture
@jbourvic As always, thank you for commenting. Happy Holidays!
Will104 profile picture
Check out PHNX too

Long term holder of LGEN and PHNX

LGEN will benefit hugely from a higher rate environment as it means the longtivity risk on its current annuity book is less

And it will create huge growth as defined benefit pension schemes transfer market will boom when pension deficits fall on higher rates making transfers more affordable
@Will104 higher rates won’t make pension deficits fall. It will cause both stock and bond values to fall thereby increasing pension deficits
Will104 profile picture

The typical UK defined benefit scheme is in deficit, and c100bps gilt move increases liabilities by c20 percent offset by asset price gains of only c5-10 percent

Most schemes in deficit are being plugged by sponsor contributions, so over time rising rates and contributions should remove/lessen materially those deficits

And when the deficits are low most schemes will be transferred to annuity buy out funders
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