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Insurer Legal & General rules out dividend growth as pandemic bites
StockMarketWire.com
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UK insurer Legal & General will keep its final dividend payment for 2020 flat due to the impact of the coronavirus pandemic, it said on Thursday.
The news came as the FTSE 100 company set out five-year targets ahead of its investor day.
The life insurer aims to generate £8 billion to £9 billion in combined cash and capital, paying dividends in the range of £5.6 billion to £5.9 billion over the 2020 to 2024 period.
People have looked to L&G for regular and reliable income during retirement for years through its annuity policies, which pay pensioners a fixed income for life. It also invests in real assets, such as infrastructure, and is one of the largest investors in the UK stock market.
'We operate in large and growing markets and we are well placed to capitalise,' said chief executive Nigel Wilson.
Investors will pay attention to targets that imply faster growth in earnings than paid out in dividends, with 3% to 6% a year dividend growth in its sights.
This would be below the pace of payout growth seen since 2015, which analysts say increased at an average 7% a year.
At 8:27am: (LON:LGEN) Legal General Group PLC share price was -7.1p at 229p
Story provided by StockMarketWire.com
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