tag:blogger.com,1999:blog-2887408586168605394.post5537300376400914866..comments2022-10-22T10:08:59.187+01:00Comments on The Dividend Drive: BUY: Legal & General (LGEN)--Growth and Income Going for a Song?Ahren Lesterhttp://www.blogger.com/profile/10131811751957847395noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2887408586168605394.post-81050128131731720122015-05-20T10:47:38.233+01:002015-05-20T10:47:38.233+01:00My pleasure, John. Glad you found it interesting.
...My pleasure, John. Glad you found it interesting.<br /><br />I agree with regards the dividend record. At present--whilst I am still building and far from living off my holdings--I am fine accepting companies that cut their dividend during the financial crisis. <br /><br />However, they have to have shown an excellent record prior to that, an excellent one since (especially whether or not the dividend is above what it was pre-crisis) and in general I look that the cut was not too deep. L&G pass all those quite well.<br /><br />As I said above, I personally think they should have kept the dividend covered at about 2 times earnings. This could have helped them work their way through any similar situation in the future in my view. The massive cash reserves are interesting in this regard though.<br /><br />There have certainly been better times to buy into L&G (and probably more going forward!). However, I am happy to have dipped a toe already!<br /><br />May see you on the shareholder books shortly then! Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-65382894288162983692015-05-20T10:26:40.362+01:002015-05-20T10:26:40.362+01:00Hi DD, thanks for the review.
L&G is definit...Hi DD, thanks for the review. <br /><br />L&G is definitely on my "buy list", but given the particular way I value companies it isn't quite there yet. The main reason is its lumpy track record thanks to the financial crisis, but if the company can continue along a steadier path for a bit longer then I'll probably end up buying if the yield stays as high as it is today and keeps growing at a decent rate.<br /><br />Probably still a good buy today though.<br /><br />Thanks again<br /><br />JohnJohn @ UK Value Investorhttp://www.ukvalueinvestor.comnoreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-70787815601752726282015-05-19T16:50:41.996+01:002015-05-19T16:50:41.996+01:00Thanks. Yes, I wish I had jumped in earlier with L...Thanks. Yes, I wish I had jumped in earlier with L&G. Although the investments I went into instead worked out quite well anyway! At the time I wanted to work out more about how the insurance sector worked behind the scenes before I invested.<br /><br />Yes, I suspect that a 10% growth in dividend will be more the new normal in the short/medium term. On a yield as healthy as L&Gs is, though, such a growth rate would see quite an uptick in income nonetheless!<br /><br />Yes, it was the Q1 report which made me reassess the company. Otherwise I would have likely topped up my Old Mutual. I noticed whilst researching that Neil Woodford chipped in more funds last month as well. It would not have changed my purchase if he had not, but always nice to see that sort of thing from someone whose methods I admire.<br /><br />Thanks. It has grown quicker and thicker than I had originally hoped which is good. Currently it is 30 holdings large (not including the forthcoming inclusion of South32 from the BHP demerger). I want to start thinking about bulking up positions rather than opening new ones. But it is easier said than done!<br /><br />I think 30 companies is comfortably diversified. However, I am heavier in some sectors that I would like to see decrease over time (oil and financial services chiefly).<br /><br />Thanks for your comments as always!Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-75050706782934874002015-05-19T16:37:44.443+01:002015-05-19T16:37:44.443+01:00Nice write-up and good luck with the new addition ...Nice write-up and good luck with the new addition - your portfolio of dividend shares is building quite quickly.<br /><br />I bought LGEN for my income portfolio last March and so far have been v. pleased with progress - especially the 20% uplift in the dividend for the current year. Although, as you point out, some of this maybe due to reduction in cover to 1.5x<br /><br />The Q1 report seemed positive earlier this month so fingers crossed for another good year.Getting to Net Zerohttps://www.blogger.com/profile/05649975918886866788noreply@blogger.com