Legal & General hikes divi as sales hit record

Legal & General (L&G), the FTSE 100-listed financial services group, hiked its dividend by a fifth after a strong rise in profits and record sales in 2012.

Legal & General (L&G), the FTSE 100-listed financial services group, hiked its dividend by a fifth after a strong rise in profits and record sales in 2012.

The company proposed on Wednesday to pay shareholders a final dividend per share (DPS) of 5.69p, up 20% from the 4.74p paid out in 2011. This brings the full-year DPS to 7.65p, also up 20% from 6.40p previously.

L&G, which provides investments, insurance and insurance, said that the "uncertain, sluggish economy has had a minimal impact" on its business, as it reported record annual premium equivalent (APE) sales of £2.11bn, up 15% from the £1.84bn reported the year before. This was helped by a 25% increase in UK Protection, 26% growth Individual Annuities and a 15% sales jump in its biggest division, Savings.

Chief Executive Nigel Wilson said that the more important growth drivers for L&G are "ageing populations, falling state spending on welfare and new long-term investment opportunities as banks retrench".

"Our expertise, scale and synergies enable us to provide solutions to these challenges, placing us squarely among the beneficiaries from these structural changes."

Recommended

Three sustainable stocks that are doing well by doing good
Share tips

Three sustainable stocks that are doing well by doing good

Professional investor Peter Michaelis of the Liontrust Sustainable Investment Team picks three stocks to buy that are helping to create a cleaner, saf…
26 Jul 2021
Share tips of the week – 23 July
Share tips

Share tips of the week – 23 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Jul 2021
Will Zoom’s $15bn purchase help it expand?
Tech stocks

Will Zoom’s $15bn purchase help it expand?

The videoconferencing platform became a household name during the pandemic, but it now needs new sources of growth. Alex Rankine reports
23 Jul 2021
Philip Morris goes “beyond nicotine”
Stocks and shares

Philip Morris goes “beyond nicotine”

US tobacco giant Philip Morris International has agreed to pay £1bn for British inhaler specialist Vectura.
23 Jul 2021

Most Popular

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Why the UK's 2.5% inflation is a big deal
Inflation

Why the UK's 2.5% inflation is a big deal

After years of inflation being a financial-assets problem, it is now an “ordinary things” problem too, says Merryn Somerset Webb. But central banks st…
16 Jul 2021
Commodity supercycle or not, here’s a metal that’ll still be in demand – tin
Industrial metals

Commodity supercycle or not, here’s a metal that’ll still be in demand – tin

Commodity prices may have come off the boil recently. But for tin, the only way is up. Dominic Frisby picks the best ways to invest.
7 Jul 2021