Latest news with #LegalAndGeneral
Yahoo
6 days ago
- Business
- Yahoo
Blackstone and L&G form up to $20 billion private credit partnership, Bloomberg News reports
(Reuters) -Blackstone has entered into a private credit partnership with Legal & General that the two firms plan to expand to up to $20 billion over the next five years, Bloomberg News reported on Thursday, citing a Blackstone spokesperson. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Blackstone, L&G Strike Up to $20 Billion Private Credit Tie-Up
Blackstone Inc. has signed a private credit partnership with Legal & General Group Plc that the two firms aim to grow to up to $20 billion over the next five years, according to a Blackstone spokesperson. The tie-up will see the New York-based alternative fund giant originate investment-grade private credit deals for the UK insurer's annuities business, while also spawning public-private hybrid credit solutions alongside L&G's asset management unit, according to a joint statement seen by Bloomberg News.
Yahoo
06-07-2025
- Business
- Yahoo
See how much an investor needs in a SIPP to earn passive income of £777 a month
My primary goal when investing is to generate passive income from dividend stocks, but I'm not taking a penny of it today. Every coin goes straight back into my Self-Invested Personal Pension (SIPP) to build wealth for my future. When I finally retire, I will use that to generate a regular second income, on top of my State Pension. Ideally, without having to sell shares or draw down the pot. To target a nice round figure like £777 a month, which adds up to a meaty £9,324 a year, I'd need to crunch some numbers. The 4% rule is a common starting point. It suggests that withdrawing that percentage of pension each year should avoid depleting the pot. Based on that, I'd need a pot of £233,100 to generate my target income. That's a decent sum, but not out of reach. I could generate a similar income from a smaller pot, if I focus on high-yielding FTSE 100 stocks like Legal & General Group (LSE: LGEN). Its shares are showing signs of life after years in the doldrums, climbing 12% in the last year. But the yield's the main attraction here. Today, it's 8% on a trailing basis. Over the last year, my total return's close to 20%. I'm happy with that. There's still a long way to go. Latest results, published on 6 March, showed core operating profits up a solid 6% to £1.62bn, while the board announced plans to return more than £5bn to shareholders over three years. That includes a £500m share buyback for 2025, following a £200m programme last year. Legal & General also increased its final dividend to 15.36p, taking the full-year payout to 21.36p, up 5%. While increases are expected to slow to 2% a year between 2025 and 2027, that feels reasonable given that generous yield. It's been a bumpy few years though. Earnings per share have fallen 62%, 43% and 61% over the last three years. That's lifted the price-to-earnings ratio to an eye-watering 88. That doesn't look cheap, but investors could still consider buying the stock today. That's because the dividend appears well-supported and the income can be reinvested while we wait for sentiment and the share price to pick up. No stock is risk-free. Legal & General remains sensitive to market swings, its asset management division has faced margin pressure, and its fortunes are closely tied to UK economic sentiment. Those are things to keep in mind. Back to the passive income goal. If I could build a portfolio yielding 5.5% on average, I'd only need around £169,527 in my SIPP to generate that £9,324 annual income. That's a lot less than the £233,100 required using the 4% rule. Investing's a long game. Getting to that £169,527 target would take time, but with consistency it's achievable. Let's say an investor was starting from scratch, with 30 years before retirement. Investing £150 a month would give them £182,000 over that timescale. This assumes average annual growth of 7% a year, roughly the long-term FTSE 100 average. There will be ups and downs along the way. Dividends can be cut, and share prices do fall. But with a well-diversified income portfolio, I think this is a realistic goal. The post See how much an investor needs in a SIPP to earn passive income of £777 a month appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has positions in Legal & General Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
2 FTSE 100 stocks to consider for a second (or third) income!
Earning a second income through dividend shares is a great way of dealing with the ever-increasing cost of living or helping to save for old age. With this in mind, here are a couple of blue-chip income stocks that are worthy of further research. Legal & General (LSE:LGEN), the pensions, asset management and insurance group, should benefit from an ageing population. And cash-strapped governments tempted to increase the state retirement age. This should help provide the growth in earnings required to meet the company's pledge to increase its dividend by 2% a year from 2025-2027. Its payout was last cut during the 2008-2009 financial crisis. Encouragingly, its balance sheet remains robust. It has more than twice the level of reserves necessary to meet its regulatory requirements. However, its profit could come under pressure from economic uncertainty, particularly in the UK. To meet its obligations, the company relies on investment income from its huge portfolio of equities, bonds and commercial property. Any global wobble or sign of fragility in the domestic economy could result in a cut in its dividend. Also, wealth management has become an increasingly competitive business. This might lead to a squeeze in margins. However, since its formation in 1836, the group's successfully navigated its way through many difficult periods. And it's seen off plenty of challengers. It now has over £1.1trn of assets under management. Analysts are forecasting the group to grow its earnings per share by 29% over the next three years. Some of this is expected to come from an enormous pipeline of new pension schemes that it's looking to acquire. Impressively, as I write (4 July) it's the highest-yielding (8.5%) share on the FTSE 100. As well as operating the UK electricity transmission and distribution networks, National Grid (LSE:NG.) supplies energy to New York and New England. Over the next four years, the group plans to grow its earnings per share by 6%-8% annually, from a baseline of 73.3p reported for the year ended 31 March 2025 (FY25). It claims this should give it the headroom to increase its dividend in line with inflation. Although it might not offer the highest yield (4.5%) on the FTSE 100, it's certainly one of the most reliable dividend payers around. Thanks to its regulated markets, it has a high degree of visibility over its earnings and therefore, how much cash it has available for its payout. But with all of its earnings coming from just two countries, it has nowhere to turn should the UK or US economies struggle. And energy infrastructure assets are expensive. It surprised investors in May 2024 with a £7bn rights issue. The money's needed to help fund a five-year £60bn investment programme. But all appears to be forgiven. Those buying shares at 645p, have since been handsomely rewarded. This week, there's been some speculation that the group might have to compensate Heathrow Airport for the March power outage. But any penalty — up to £100m has been quoted — would be inconsequential. At the end of FY25, it had assets of £106.7bn on its balance sheet, including £1.18bn of cash. Although being regulated has its downsides, I'm sure most companies would relish the prospect of having a monopoly in their key markets. The post 2 FTSE 100 stocks to consider for a second (or third) income! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Beard has positions in Legal & General Group Plc. The Motley Fool UK has recommended National Grid Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
04-07-2025
- Business
- Yahoo
Prediction: in 12 months the under-achieving Legal & General Group share price could turn £10k into…
The Legal & General Group (LSE: LGEN) share price has been stuck in the slow lane for too long. It's up 10% over the last 12 months but that's well behind FTSE 100 rival Aviva, which climbed 30% in the same timescale. The long-term picture's even more painful. Aviva's up nearly 130% over five years, while Legal & General Group has crawled forward by just 9%. However, it means today's buyers can lock in a hefty yield of 8.5%. If Legal & General's share price and dividend forecasts hold up, investors could be in for a pretty decent 12 months. There's another consolation. On 12 March, the group's full-year results included a £500m share buyback. That followed a £200m buyback last year, with £1bn more lined up once it completes the sale of its US protection arm. Core operating profits rose 6% to £1.62bn in 2024, helped by strong showings in retail and institutional retirement. It also lifted the full-year dividend to 21.36p, up 5%. However, the board's now capped annual dividend-per-share growth at 2% from 2025 to 2027. On 17 June, the group outlined ambitious growth plans for its asset management arm. It's aiming to boost annual operating profit to between £500m and £600m by 2028, helped by rising demand for private markets and retirement products. With £1.1trn under management, it's already the UK's biggest asset manager. It also expects group earnings per share to rise 6-9% in 2025. That all sounds like a decent platform for long-term wealth creation. Yet recent history's been rough. Earnings per share have tumbled 62%, 43% and 61% in the last three years. That's left the stock with a price-to-earnings ratio of 88. On paper, that looks horribly expensive. This stock isn't risk-free. It remains highly exposed to UK consumer and business confidence. Asset management margins are under pressure, and if interest rates fall that could hit demand for annuities. The 10 analysts offering 12-month price targets see the stock hitting 274p, up around 9.75% from today's 250p. Add in the forecast 21.9p dividend and the yield hits 8.77%. That lifts the potential total return to roughly 18.5%. If that plays out, £10,000 could grow to around £11,850. Of course, forecasts are rarely spot on. But for a slow-and-steady stock like this, that would be a solid year. I prefer to think about the longer term. Over time, compounding does the heavy lifting. Reinvesting dividends during market dips can help too. I hold Legal & General and I'm not selling. The income's way too attractive to give up. I'm hoping it plays catch-up with Aviva, eventually, but there are no guarantees in today's uncertain economic climate. That worrying P/E won't fix itself overnight. Still, with that blistering rate of income intact and the business shifting gear, I think Legal & General's worth considering today. The post Prediction: in 12 months the under-achieving Legal & General Group share price could turn £10k into… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has positions in Legal & General Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
