I bought Legal and general (LSE: LGGU) actions Three times in the summer of 2023 and he had high hopes for them

. FTSE 100 The insurer and asset manager traded in relation to price to profit (P/E) below seven and had high dividend efficiency of almost 8%.

It did not bring a significant raise in share prices, but that did not worry me. Quite the opposite. I thought that this could be due to a violent growth and decided to enter before his arrival.

Little growth

Unfortunately, it wasn’t. Over the past 12 months, the price of legal and general actions has dropped by 3.5%. In two years it dropped by 3.5%.

Especially nothing went wrong. The results were quite positive and the price of the action jumps during the day. But every time it stretched.

Do I regret buying shares? NO. What is legal and general lack of growth will be made up in dividends so far.

Today’s profitability of 8.9% is one of the highest on the entire FTSE 100, and when its payments of shareholders have achieved my personal retirement twice a year (SIPP), I certainly notice.

I invested a modest 4000 GBP at an average input price of 226 pence. Today, shares are 239 pence, so I raised only 5.75%. But when I include dividends, the complete return is slightly more respected.

I have received three payments so far. The first in September 2023, another two in June and September 2024, total: 480 £.

My participation is developed

I automatically reinvested everyone, as always, buying another 201 actions. This raised my sum to 1980.

The fourth will go to my trade account next month, June 5, worth 15.36 pens per share. I will get around £ 304, which will buy me another 127 actions and raise my sum to 2 107. The expression “slowly but certainly” is approximated here.

Assuming that the legal and general price of shares will not raise by June 5 (quite a unthreatening assumption, taking into account the recent experience), my total share will be worth 5,038 pounds. My total return will be more respected 26%, and the dividends have been invested again.

Rate reductions emphasize performance

Who knows, at some point legal and general price of shares can occur to life, and I will get a certain raise. Perhaps, when interest rates fall, investors will look more kindly dazzling profitability. Which has an additional benefit of the look quite unthreatening.

The management board has recently announced a 500 million pound redemption program and plans to return shareholders of over 5 billion pounds in three years.

On the other hand, actions may fall. Legal & General has business interests in the USA and although services have largely avoided tariffs that may change.

Perhaps I closed a classic trap in a value in which the profits and the price of inactivity for so long that the dividend ultimately turns out to be unbalanced.

I hope not. I am already addicted to my regular cash injections. Forecasts suggest that the shares will pay a year -round dividend of 22 pence next year. It would be worth another 463 pounds for me. And I reinvest everyone to continue to build my participation in legal and general and my income.