When FTSE100 dropped to a 2026 low of 9,670.5 points on March 23, technically this meant a stock market correction. London’s top index is down more than 11.5% from its recent high, more than the 10% needed to meet the definition.

A stock market correction doesn’t sound as bad as a stock market crash – i.e. a drop of 20% or more – right? It actually sounds, well, correct… and correct usually means good, right? I would say this is definitely a good option for investors looking to buy budget-friendly stocks.

However, over the past few days, share prices have recovered some of their losses. So can we still find bargains among FTSE 100 shares?

Top FTSE 100 stocks

For me it’s still a resounding yes. I’m drawn to stocks that I think are among the best in one of my favorite sectors. I’m talking about Legal and general (LSE: LGEN). The chart above shows how far it lags the index.

Legal & General has suffered more than the stock exchange as a result of recent events. It’s down a whopping 22% from its 52-week low, so at least this one stock technically failed.

At the time of writing, we anticipate a 12% rebound from the low. But I really expect insurance stocks to suffer more from economic threats, especially from war. I definitely see further volatility likely in the sector – and this is a risk that potential investors need to come to terms with.

Big fat dividend

The share price has pushed the stock price down to a forward price-to-earnings (P/E) ratio of around 7.8 today. It seems budget-friendly to me – although it may not be as good as it immediately seems. The problem is that analysts expect profits to decline slightly after this year. And this could raise the P/E ratio to 9.5 by 2028.

Does this provide enough margin of safety to compensate for the sector’s typically cyclical long-term volatility? I might give it a thumbs down if it weren’t for one key thing. This is Legal & General’s expected dividend yield, which is currently as high as 9.1%. This is currently the highest result on the entire FTSE 100 index.

Currently, dividends are never guaranteed. And the insurance sector’s dividends are probably among the least guaranteed. However, analysts do not expect any cuts in the next three years, which I think is a good sign.

What to do?

Legal & General has been on my watchlist for some time. But the main reason I didn’t go there is because I bought it Aviva I shared some time ago and I don’t want to focus too much on any one sector – even if it were my favorite.

I think investors who like Legal & General’s long-term cash outlook and don’t mind some volatility should consider stocks on the decline. The same goes for most stocks in most sectors. Stock market corrections are my friend.