..reported a Q3 update today and you may be surprised to find out that this is Legal & General (LGEN). These numbers looked strong across the board with all the reported metrics looking good. In particular the net cash generation remained strong up 14% and operational cash generation was up 11%, This should help to underpin further dividend growth which has been strong in recent years as they have reduced the cover level.
Thus this year is likely to be the last year of near 20% dividend growth unless they manage to grow at that rate going forwards on an underlying basis. This years dividend is forecast to be around 13.4p which gives a yield of just over 5% at the current share price of 262p.
Next years dividend is currently forecast to be up by 7.5% to 14,4p raising the yield to 5,5%.
On the basis of the yield, which is the main attraction with this one, the shares should offer a double digit total return in the absence of any change in the rating or a broader market decline. As such it would probably deserve a place in a diversified income portfolio, but as ever you pay your money and take your choice.