{"id":560607,"date":"2026-05-01T13:39:09","date_gmt":"2026-05-01T13:39:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/560607\/"},"modified":"2026-05-01T13:39:09","modified_gmt":"2026-05-01T13:39:09","slug":"how-many-legal-general-shares-does-it-take-to-match-the-state-pensions-12547-income","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/560607\/","title":{"rendered":"How many Legal &#038; General shares does it take to match the State Pension&#8217;s \u00a312,547 income?"},"content":{"rendered":"<p><img width=\"1200\" height=\"800\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/05\/Hiker-1200x800.jpg\" class=\"attachment-full size-full wp-post-image\" alt=\"A senior man using hiking poles, on a hike on a coastal path along the coastline of Cornwall. He is looking away from the camera at the view.\" decoding=\"async\" fetchpriority=\"high\"  \/><\/p>\n<p>Image source: Getty Images<\/p>\n<p>Legal &amp; General (<a class=\"tickerized-link\" href=\"https:\/\/www.fool.co.uk\/tickers\/lse-lgen\/\" rel=\"nofollow noopener\" target=\"_blank\">LSE: LGEN<\/a>) shares come with an absolutely stunning rate of income. Today, the trailing yield is 8.66%, the highest on the entire FTSE 100. That\u2019s roughly double what savers can get from a best-buy savings account. So what are we waiting for?<\/p>\n<p>Actually, investors aren\u2019t waiting. Legal &amp; General is currently the second most bought stock in the UK, according to AJ Bell. It\u2019s beaten only by Rolls-Royce. So is this a stone cold, no-brainer buy?<\/p>\n<p>Should you buy Legal &amp; General Group Plc shares today?<\/p>\n<p style=\"margin-top:var(--wp--preset--spacing--60)\">Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from Trump&#8217;s tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.<\/p>\n<p style=\"margin-top:var(--wp--preset--spacing--60)\">That&#8217;s why this could be an ideal time to secure this valuable research \u2013 Mark&#8217;s analysts have scoured the markets to reveal 5 of his favourite long-term &#8216;Buys&#8217;. Please, don&#8217;t make any big decisions before seeing them.<\/p>\n<p>Typically, high yields like this one are seen as risky. There\u2019s a danger shareholder payouts become unsustainable, as the underlying business struggles to generate the <a href=\"https:\/\/www.fool.co.uk\/investing-basics\/understanding-company-accounts\/the-cash-flow-statement\/\" rel=\"nofollow noopener\" target=\"_blank\">cash flows<\/a> required to fund its largesse.<\/p>\n<p>Is that massive income sustainable?<\/p>\n<p>But looking at its dividend history, Legal &amp; General seems good for it. The board has increased shareholder payouts every year this millennium but three. It cut them in 2008 and 2009, during the financial crisis. And it froze dividends in 2020, during the pandemic. But those were exceptional circumstances. Otherwise, it looks committed to rewarding <a href=\"https:\/\/www.fool.co.uk\/investing-basics\/getting-started-in-investing\/foolish-investing-taking-the-long-term-approach\/\" rel=\"nofollow noopener\" target=\"_blank\">long-term investors<\/a>. Over the last 15 years, payouts have grown at an impressive compound annual rate of 10.7%.<\/p>\n<p>However, that\u2019s slowing. Dividend growth has slipped to 5% a year since the pandemic, and will now slip further to 2%. As inflation spikes due to the Iran crisis, this means the value of the dividend will fall in real terms. But it\u2019s still a stellar rate of income.<\/p>\n<p>In full-year 2025, Legal &amp; General boasted a solid Solvency II coverage ratio of 210%. That was down from 232% in 2024. However, that was mostly due to the impact of returning capital to shareholders via a record \u00a31.2bn <a href=\"https:\/\/www.fool.co.uk\/investing-basics\/understanding-the-market\/share-buybacks\/\" rel=\"nofollow noopener\" target=\"_blank\">share buyback<\/a>, and the capital strain from writing new, high-volume pension risk transfer (PRT) business. Overall, the balance sheet looks solid. The board will return \u00a32.4bn to shareholders over the next year.<\/p>\n<p>Should income seekers go all in on this stock?<\/p>\n<p>Let\u2019s say an investor really went for it, and chose to generate an income equivalent to the full new State Pension of \u00a312,547.60 a year, purely from this one stock. I wouldn\u2019t recommend doing that as diversification is essential, but I\u2019m interested to see the results.<\/p>\n<p>In 2026, Legal &amp; General looks set to pay a total dividend of 22.23p per share. Given that, an investor would need to buy 56,444 shares. At today\u2019s price of around 251p, that would cost them a hefty \u00a3141,676.<\/p>\n<p>Our investor would be a need a huge portfolio to do that safely. It\u2019s always better to spread the money around, especially since the Legal &amp; General share price performance has been disappointing. It\u2019s up just 4% over the last year, and down 11% over five. What investors gain in income they\u2019ve sacrificed in growth. Also, as the UK\u2019s biggest asset manager, with \u00a31.2trn to look after, it\u2019s vulnerable to today\u2019s stock market volatility.<\/p>\n<p>Of course, the shares could go on a blistering run at some point, so investors could get growth as well. I suspect they will at some point, but I\u2019ve no idea when. Either way, Legal &amp; General is a compelling income stock, and well worth considering as part of a balanced portfolio. But I wouldn\u2019t go all in.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images Legal &amp; General (LSE: LGEN) shares come with an absolutely stunning rate of income.&hellip;\n","protected":false},"author":2,"featured_media":560608,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-560607","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/560607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=560607"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/560607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/560608"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=560607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=560607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=560607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}