Legal & General Group
Website:
Legal & General Group
Index:
FTSE 100
EPIC: LGEN
Supersector:
Insurance
Sector:
Life Insurance
Subsector:
Life Insurance
Market Cap:
£14.27B
Payout Frequency: Semi-Annual
Legal & General Group Dividend Analysis and Summary
Key Dividend Details
- FY25 ordinary dividend per share (DPS): 21.79p (+2% year-on-year).
- Final dividend timetable: Ex-dividend 23/04/2026; Record 24/04/2026; Payment 04/06/2026; DRIP election deadline 13/05/2026.
- Interim 2026 timetable (for reference): Ex-dividend 20/08/2026; Record 21/08/2026; Payment 25/09/2026; DRIP deadline 04/09/2026.
- Capital returns alongside dividend: £1.2bn share buyback commencing this week; management guiding ~2% DPS growth in 2026; targeted shareholder returns of >£5bn over 2025–2027.
Dividend Sustainability and Growth
- Coverage by capital generation: Solvency II operating capital generation per share 26.78p versus DPS 21.79p implies c. 1.2x coverage; Group OSG £1.5bn (+5%).
- Capital strength: Pro forma Solvency II coverage ratio 210% (after the Meiji Yasuda transaction and assumed buyback) underpins ongoing distributions.
- Earnings momentum: Core operating profit +6% and core EPS +9% while DPS +2% signals a conservative uplift with headroom for support.
- Return mix: The large buyback balances cash dividends and should reduce share count, supporting per-share dividend capacity over time.
Structural/Policy Considerations
- £1.2bn share buyback (largest in company history) now starting—supportive for per-share metrics but uses capital that might otherwise fund faster DPS growth.
- Meiji Yasuda transaction included in pro forma capital metrics; no demerger, M&A closures affecting payout policy, or share consolidation disclosed.
- Business mix tailwinds: strong DB PRT activity, retail annuities and DC workplace growth feed Asset Management flows and fee margin expansion, supporting recurring capital generation and dividend capacity.
Risks and Flags
- Market and execution risk: PRT volumes, credit spreads, longevity assumptions, and investment markets can affect OSG and capital buffers; a large buyback reduces flexibility if conditions deteriorate.
- Policy trajectory: Near-term guidance of ~2% DPS growth is modest; faster growth likely contingent on sustained OSG and Asset Management margin progress.
- Pro forma nuance: The 210% SII ratio reference factors an assumed c.£1bn buyback; the announced programme is £1.2bn. Coverage remains strong, but additional distributions should be monitored for capital sensitivity.
Read more
Legal & General Group Annual Dividend Yield - 8.55%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
05/06/2025 |
Final |
15.36p |
GBX |
| 21/08/2025 |
26/09/2025 |
Interim |
6.12p |
GBX |
Total (Annual Dividends Per Share):
21.48p
Dividend Yield =
Annual Dividends Per Share (21.48p)
÷ Share Price (251.25p)
= 8.55%
Legal & General Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 23/04/2026 |
04/06/2026 |
Final |
15.6700p |
GBX |
| 21/08/2025 |
26/09/2025 |
Interim |
6.12p |
GBX |
| 24/04/2025 |
05/06/2025 |
Final |
15.36p |
GBX |
| 22/08/2024 |
27/09/2024 |
Interim |
6.00p |
GBX |
| 25/04/2024 |
06/06/2024 |
Final |
14.63p |
GBX |
| 24/08/2023 |
26/09/2023 |
Interim |
5.71p |
GBX |
| 27/04/2023 |
05/06/2023 |
Final |
13.93p |
GBX |
| 18/08/2022 |
26/09/2022 |
Interim |
5.44p |
GBX |
| 21/04/2022 |
01/06/2022 |
Final |
13.27p |
GBX |
| 12/08/2021 |
20/09/2021 |
Interim |
5.18p |
GBX |
| 15/04/2021 |
27/05/2021 |
Final |
12.64p |
GBX |
| 13/08/2020 |
24/09/2020 |
Interim |
4.93p |
GBX |
| 23/04/2020 |
04/06/2020 |
Final |
12.64p |
GBX |
| 15/08/2019 |
26/09/2019 |
Interim |
4.93p |
GBX |
| 25/04/2019 |
06/06/2019 |
Final |
11.82p |
GBX |
| 16/08/2018 |
27/09/2018 |
Interim |
4.60p |
GBX |
| 26/04/2018 |
07/06/2018 |
Final |
11.05p |
GBX |
| 17/08/2017 |
21/09/2017 |
Interim |
4.30p |
GBX |
| 27/04/2017 |
08/06/2017 |
Final |
10.35p |
GBX |
| 18/08/2016 |
22/09/2016 |
Interim |
4.00p |
GBX |
| 28/04/2016 |
09/06/2016 |
Final |
9.95p |
GBX |
| 13/08/2015 |
17/09/2015 |
Interim |
3.45p |
GBX |
| 23/04/2015 |
04/06/2015 |
Final |
8.35p |
GBX |
| 27/08/2014 |
01/10/2014 |
Interim |
2.90p |
GBX |
| 23/04/2014 |
04/06/2014 |
Final |
6.90p |
GBX |
| 28/08/2013 |
30/09/2013 |
Interim |
2.40p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
6.000 |
14.630 |
GBX |
20.630 |
5.040 |
| 2023 |
5.710 |
13.930 |
GBX |
19.640 |
4.970 |
| 2022 |
5.440 |
13.270 |
GBX |
18.710 |
4.990 |
| 2021 |
5.180 |
12.640 |
GBX |
17.820 |
1.420 |
| 2020 |
4.930 |
12.640 |
GBX |
17.570 |
4.890 |
| 2019 |
4.930 |
11.820 |
GBX |
16.750 |
7.020 |
| 2018 |
4.600 |
11.050 |
GBX |
15.650 |
6.820 |
| 2017 |
4.300 |
10.350 |
GBX |
14.650 |
5.010 |
| 2016 |
4.000 |
9.950 |
GBX |
13.950 |
18.220 |
| 2015 |
3.450 |
8.350 |
GBX |
11.800 |
20.400 |
| 2014 |
2.900 |
6.900 |
GBX |
9.800 |
308.330 |
| 2013 |
2.400 |
|
GBX |
2.400 |
|
Legal & General Group Dividend Calculator
Legal & General Group Dividend Growth
| Dividend Growth (1Y) |
2.01%
|
| Dividend CAGR (5Y) |
4.4%
|
| Years of Growth |
16
|
| Payout Ratio |
215.37%
|
| Buyback Yield |
-2.15%
|
| Shareholder Yield |
6.49%
|
| P/E Ratio (TTM) | 30.88 |
|---|
| Forward P/E | 10.78 |
|---|
| P/FCF | 3.14 |
|---|
| Earnings Yield | 4.05% |
|---|
| FCF Yield | 31.9% |
|---|
| ROE | 17.86% |
|---|
| ROCE | 0.22% |
|---|
| Profit Margin | 5.38% |
|---|
| Operating Margin | 9.27% |
|---|
| Gross Margin | 25.49% |
|---|