Legal & General Group (LSE: LGEN) shareholders are set to receive the final dividend for FY25 on Thursday, 4 June, with the company currently holding the highest dividend yield in the FTSE 100.
The final dividend payment amounts to 15.67p per share, bringing the total dividend for FY25 to 21.79p per share across the full year.
The ex-dividend date was 23 April, meaning only those who held shares before that date will qualify for Thursday’s payment.
A shareholder owning 2,000 Legal & General shares is therefore in line to receive around £313 from the payment this week.
The share price has risen approximately 15% in just over a month, though the stock has historically tended to trend back to a range of 225p-275p after similar gains.
Takeover speculation has been mounting in recent weeks, with a Financial Times report from mid-May indicating that potential bidders, including insurers and alternative asset managers, have been taking a close look at the company.
A company insider told the FT: “It feels like we’re being dressed up for a sale.”
Despite the speculation, CEO Antonio Simoes has rejected the idea that the firm is considering a break-up or sale, instead focusing on simplifying the group and increasing its capital-light forms of income.
Legal & General’s holding of large quantities of UK government bonds also means any overseas bid could face regulatory obstacles, adding further uncertainty to any potential acquisition scenario.
AJ Bell data shows the stock’s 10-year annualised return stands at just 7.24%, compared to 9.51% for the FTSE 100, with almost all returns coming through dividends rather than share price appreciation.
The company currently carries a market capitalisation of £15bn, despite managing around £1.2trn in assets, a disparity that some argue points to trapped value that could be unlocked through a break-up.
Legal & General is in the middle of a £1.2bn share buyback programme, described as the largest in the company’s history, which may continue to support the share price even if acquisition talk fades.
The firm has confirmed it remains on track to deliver 2% dividend growth annually between 2025 and 2027, supported by asset disposals, alongside its ongoing buyback activity.
The forward dividend yield currently sits at 8.2%, though the persistently high yield has been flagged as a potential warning sign regarding the long-term sustainability of the progressive payout policy.
Critics also point to the group’s considerable complexity, with operations spanning private markets and multiple financial services divisions, making it harder to assess underlying risks and determine fair value.