1152 GMT - The run of Legal & General's shares has been disappointing given its big buybacks, HSBC says in a research note. The U.K. financial services group intends to return around 30% of its market cap to shareholders over the next two years but its ordinary dividend per share is constrained, analysts say. Its current 500 million pound buyback and its extra 1 billion pound buyback from the sale of its U.S. protection business mean the stock offers an attractive yield for the next two years, they say. However, neither underlying core operating profit nor net surplus generation cover its ordinary dividend cost in the short term, they note. "We see limited upside left for L&G and better opportunities elsewhere," they add. HSBC cuts its rating on the stock to hold from buy. Shares have risen 4.3% year to date. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
May 19, 2025 07:52 ET (11:52 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.