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

Four high-quality US stocks to give shelter from the storm
Share tips

Four high-quality US stocks to give shelter from the storm

Professional investor Timothy Parton of the JPMorgan American Investment Trust picks four solid US stocks to buy now.
24 May 2022
Three undervalued mid-cap stocks with attractive prospects
Share tips

Three undervalued mid-cap stocks with attractive prospects

Professional investor Katen Patel of the JPMorgan Mid Cap Investment Trust picks three fast-growing mid-cap stocks to buy now.
24 May 2022
Britain’s ten most-hated shares – w/e 20 May
Stocks and shares

Britain’s ten most-hated shares – w/e 20 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
23 May 2022
Britain's most-bought shares w/e 20 May
Stocks and shares

Britain's most-bought shares w/e 20 May

A look at Britain's most-bought shares in the week ending 13 May, providing an insight into how investors are thinking and where opportunities may lie…
23 May 2022

Most Popular

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Everything is collapsing at once – here’s what to do about it
Investment strategy

Everything is collapsing at once – here’s what to do about it

Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect th…
23 May 2022
Barry Norris: we’re already in the 1970s. Here’s how to invest
Investment strategy

Barry Norris: we’re already in the 1970s. Here’s how to invest

Merryn talks to Barry Norris of Argonaut capital about the parallels between now and the 1970s; the transition to “green” energy; and the one sector w…
19 May 2022