Legal and general (LSE: LGGU) Actions have started over the past week, growing by 8.7% without any fresh news of the company to clarify the rally. This is a scarce energy explosion for this reliable dividend payer. One in which dividend income investors pay attention.

. FTSE 100 The insurer and asset manager offers one of the most generous crops in the index with the final capacity of 8.74%.

Expectations regarding raise in dividend have been cut from 5% to 2% per year, but it is forecasted that the efficiency will reach 8.81% this year and 9.01% in 2026.

Is it balanced? The advice is believed. However, this cut the expectations of a dividend growth from 5% to just 2% per year. It’s disappointing but understandable.

FTSE 100 income machine

The results of the full year Legal & General 2024, published in March, were solid. The basic operating profit increased by 6% to 1.62 billion GBP, while the basic profit per share went behind.

The management also announced a up-to-date redemption of shares in the amount of £ 500 million in 2025. This is part of the plan to return the shareholders within three years. This is about 40% of the group’s market capitalization.

The group simplified its structure, releasing their activities in building the house of the Cala Homes and American protection activities, while strengthening institutional retirement divisions and asset management. Managed assets remain huge at 1.1 %, although they undoubtedly beat during recent uncertainty. The solvency ratio is a solid 232%.

Despite its strengths, it rarely happens that this supply reflects almost 9% in one week. Especially without a company or sectors. President Trump helped slightly on tariffs. However, you should not rely.

It may also depend on traders who look into the future at falling interest rates. This will cause that high -performance shares are more attractive than bonds or cash, although with capital risk.

Growth supplies in disguise?

Legal and general are not traditionally perceived as a history of growth, but builds up-to-date revenue lines. Last year, he wrote 10.7 billion pounds in global retirement risk transfer offers, including record -breaking levels in the USA and Canada, and turns his armchair management arm towards products with a higher margin. An investment in an American real estate specialist Taurus and a up-to-date partnership with the Japanese insurer Meiji Yasuda also open up-to-date possibilities.

Nothing moves in a straight line. Unusual earnings in recent years have pushed a valuation to the bloated 85-fold earnings. It would usually run me. But with such high efficiency that the sublime valuation is more like an anomalies than a broker.

Long -term value through income

The forecasts are always slippery, especially in times of geopolitical tension. 15 analysts following actions set a median annual target price of 267.5 pens. If it is correct, it is a modest raise by about 8% compared to today’s 248.8 pence,

Forecasts will never be relying, especially today. But this confirms my view that every raise in stock prices will be diminutive. Dividends remain a real story here.

Legal & General is not a supply of prosecution of miniature -term emotions, even if we got one last week. But for long -term investors who aim to build a high and, I hope that the stream of income, I think it is worth considering. It will not be sizzling for a long time, but with happiness it should remain a snail-paced burner for years.