URGENT UPDATE: Legal & General (LSE: LGEN) shares are projected to generate an impressive £859 in passive income from a £10,000 investment by 2026. This forecast comes as the financial services giant aims for a 2% annual increase in dividends, drawing significant interest from UK investors seeking reliable income.
In 2025, Legal & General distributed two dividends: 15.36p per share on 5 June and 6.12p per share on 26 September. This totaled 21.48p for the year. With the anticipated 2% increase, shareholders can expect a payout of approximately 21.9p per share in 2026.
For potential investors, assuming a share price of £2.55, a £10,000 investment would yield around 3,921 shares. Multiplying this by the expected 21.9p yield results in a projected income of £859 for the year. This figure emphasizes the attractiveness of Legal & General as a passive income option.
However, investors should be aware of potential risks. While the projected income is appealing, dividends are not guaranteed, and the company’s payout could be reduced or canceled. Currently, Legal & General’s dividend coverage ratio is low, indicating that current payouts exceed earnings, raising concerns about sustainability.
Market volatility also poses risks. Short-term fluctuations may occur due to economic instability, while long-term performance has been underwhelming—Legal & General’s share price has not kept pace with major indexes like the FTSE 100 and S&P 500 over the past decade.
Investors are urged to consider these factors carefully. While Legal & General shares may contribute to a diversified income strategy, alternative opportunities could offer higher returns in the long run.
In a rapidly changing financial landscape, it’s crucial to stay informed. Monitoring updates from Legal & General and analyzing market conditions will be vital for any potential investor looking to maximize returns from their investments.
Stay tuned for more updates as this situation develops.
