By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Viral Trending contentViral Trending content
  • Home
  • World News
  • Politics
  • Sports
  • Celebrity
  • Business
  • Crypto
  • Gaming News
  • Tech News
  • Travel
Reading: This company tops my Stocks and Shares ISA shopping list!
Notification Show More
Viral Trending contentViral Trending content
  • Home
  • Categories
    • World News
    • Politics
    • Sports
    • Celebrity
    • Business
    • Crypto
    • Tech News
    • Gaming News
    • Travel
  • Bookmarks
© 2024 All Rights reserved | Powered by Viraltrendingcontent
Viral Trending content > Blog > Business > This company tops my Stocks and Shares ISA shopping list!
Business

This company tops my Stocks and Shares ISA shopping list!

By Viral Trending Content 4 Min Read
Share
SHARE
<p>Image source: Getty Images</p>

With the annual contribution deadline for a Stocks and Shares ISA falling in the coming week, I have been thinking about my own ISA strategy.

Contents
Demand likely strongStrong cash flows and dividendsAttractive valuationBillions of pounds of dividends

I have a shopping list of companies I would like to buy stakes in when I have spare cash in my Stocks and Shares ISA.

The company currently at the top of that list is Legal & General (LSE: LGEN).

Demand likely strong

Not all investors realise that Legal & General is not the company it used to be.

The name and logo are still familiar to millions from decades advertising general insurance for consumers. I see that strong brand awareness as an advantage.

But Legal & General’s business has shifted increasingly onto financial products related to lifetime financial planning, such as pensions and investment management.

That market is huge and I expect it to be fairly resilient over the long term.

But while Legal & General’s revenues are large, they have not shown growth in recent years.

A large market like this one attracts competitors. That can put pressure on pricing. And that could be a long-term risk to profit margins.

Strong cash flows and dividends

Still, Legal & General has been consistently profitable over the past few years.

That is good news from a shareholder’s perspective. The FTSE 100 firm has been a strong dividend payer. Looking back over the past couple of decades, there have only been two periods when the dividend per share did not rise annually.

One was during the pandemic, when it was held flat. The other was following the 2008 financial crisis, when the dividend was cut.

It did then regain its old level — and more — within a few years. But a financial crisis hurting investment returns and earnings is always a risk, including for the dividend.

Source: TradingView

At the moment, the yield is 8%. That is around double the FTSE 100 average, which helps explain why Legal & General is top of the shopping list for my Stocks and Shares ISA.

Attractive valuation

What about valuation though? After all, investing is not just about buying the right shares, but also trying to buy them at an attractive price.

The price-to-earnings ratio of 35 looks expensive. However, last year saw a big drop in earnings. That accounting figure however, reflects the sort of movements in investment valuations I identified above as an ongoing risk. I expect stronger earnings in at least some future years.

Operating profit of £1.7bn compares favourably to a market capitalisation of around £15bn, as far as I am concerned.

Billions of pounds of dividends

Between 2020 and this year, the company expects to have paid well over £5bn (and perhaps almost £6bn) in dividends — and still have accumulated net surplus cash of £0.8bn.

That underlines the lucrative, cash generative nature of the firm’s business model.

Tucking Legal & General into my Stocks and Shares ISA now, while the yield is 8%, could hopefully let me earn some of that dividend gusher if it keeps flowing in years to come!

You Might Also Like

Carioca Cafe manager hopes to reopen legendary Denver dive bar after wall collapse

India’s macro setup stable, but markets await earnings firepower: Hemang Jani

Achieving a £1k a month passive income goal with just £20k in savings? It’s possible!

Trump’s tax bill on the brink as House rebels hold up passage

‘Massive’ investment in R&D leads China’s Honor to launch world’s thinnest foldable phone

TAGGED: Investing
Share This Article
Facebook Twitter Copy Link
Previous Article Democrats Are More Fearful and Angry If Trump Is Elected Than Republicans About Biden: Poll
Next Article Mexico's president says public safety is 'getting complicated' in Baja California
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

- Advertisement -
Ad image

Latest News

Carioca Cafe manager hopes to reopen legendary Denver dive bar after wall collapse
Business
Sui breaks $3 resistance: Is a new ATH next?
Crypto
US airstrikes set back Iran’s nuclear programme by ‘one or two years’, Pentagon says
World News
Ripple Joins Ranks Of Crypto Companies Seeking Banking Licenses In The US
Crypto
India’s macro setup stable, but markets await earnings firepower: Hemang Jani
Business
Mecha BREAK Peaks at Nearly 133,000 Concurrent Players on Steam at Launch
Gaming News
Honor Magic V5 Foldable Specs Officially Revealed
Tech News

About Us

Welcome to Viraltrendingcontent, your go-to source for the latest updates on world news, politics, sports, celebrity, tech, travel, gaming, crypto news, and business news. We are dedicated to providing you with accurate, timely, and engaging content from around the globe.

Quick Links

  • Home
  • World News
  • Politics
  • Celebrity
  • Business
  • Home
  • World News
  • Politics
  • Sports
  • Celebrity
  • Business
  • Crypto
  • Gaming News
  • Tech News
  • Travel
  • Sports
  • Crypto
  • Tech News
  • Gaming News
  • Travel

Trending News

cageside seats

Unlocking the Ultimate WWE Experience: Cageside Seats News 2024

Carioca Cafe manager hopes to reopen legendary Denver dive bar after wall collapse

Investing £5 a day could help me build a second income of £329 a month!

cageside seats
Unlocking the Ultimate WWE Experience: Cageside Seats News 2024
May 22, 2024
Carioca Cafe manager hopes to reopen legendary Denver dive bar after wall collapse
July 3, 2025
Investing £5 a day could help me build a second income of £329 a month!
March 27, 2024
Brussels unveils plans for a European Degree but struggles to explain why
March 27, 2024
© 2024 All Rights reserved | Powered by Vraltrendingcontent
  • About Us
  • Contact US
  • Disclaimer
  • Privacy Policy
  • Terms of Service
Welcome Back!

Sign in to your account

Lost your password?