Should I Buy Legal & General Shares in the United Kingdom in 2025?
Is it the right time to buy Legal & General?
ScoreLegal & General Group PLC (LGEN) continues to stand out as a core player in the UK financial services landscape. As of early July 2025, the stock trades at approximately 251.20p, with a robust average daily trading volume of over 25 million shares. The firm has shown steady performance this year, returning 9.29% year-to-date, supported by a sustained rebound in the UK equity market and positive technical momentum. Notably, Legal & General delivered solid full-year results in March 2025, posting 6% core operating profit and EPS growth, while reiterating guidance for 6-9% EPS growth in 2025. Recent strategic updates highlight continued expansion in asset management—now managing £1.1 trillion—and a thriving bulk annuities business, underlining the company's growth ambitions. Market sentiment remains constructive, buoyed by a 15-year streak of rising dividends, a yield of 8.62%, and a £500 million share buyback executed in 2025. With technical indicators signalling a strong buy and the consensus of more than 10 national and international banks pointing to a target price of 326.56p, Legal & General appears well-positioned relative to sector peers. For investors seeking dependable dividends and exposure to expanding UK pension and asset management sectors, the current setup warrants close attention.
- ✅Attractive 8.62% dividend yield with 15-year consecutive growth streak.
- ✅Strong technical momentum; trading above all major moving averages.
- ✅Clear strategy for 6-9% EPS growth and increased capital returns.
- ✅Market leader in UK bulk annuities with growing deal pipeline.
- ✅£1.1 trillion in assets under management, with ambitious growth targets.
- ❌P/E ratio temporarily elevated due to one-off accounting effects.
- ❌Sensitive to interest rate changes and evolving UK regulations.
Score- ✅Attractive 8.62% dividend yield with 15-year consecutive growth streak.
- ✅Strong technical momentum; trading above all major moving averages.
- ✅Clear strategy for 6-9% EPS growth and increased capital returns.
- ✅Market leader in UK bulk annuities with growing deal pipeline.
- ✅£1.1 trillion in assets under management, with ambitious growth targets.
Is it the right time to buy Legal & General?
- ✅Attractive 8.62% dividend yield with 15-year consecutive growth streak.
- ✅Strong technical momentum; trading above all major moving averages.
- ✅Clear strategy for 6-9% EPS growth and increased capital returns.
- ✅Market leader in UK bulk annuities with growing deal pipeline.
- ✅£1.1 trillion in assets under management, with ambitious growth targets.
- ❌P/E ratio temporarily elevated due to one-off accounting effects.
- ❌Sensitive to interest rate changes and evolving UK regulations.
Score- ✅Attractive 8.62% dividend yield with 15-year consecutive growth streak.
- ✅Strong technical momentum; trading above all major moving averages.
- ✅Clear strategy for 6-9% EPS growth and increased capital returns.
- ✅Market leader in UK bulk annuities with growing deal pipeline.
- ✅£1.1 trillion in assets under management, with ambitious growth targets.
- What is Legal & General?
- The Legal & General share price
- Our full analysis of Legal & General stock
- How to buy Legal & General stock in the United Kingdom?
- Our 7 tips for buying Legal & General stock
- The latest news about Legal & General
- FAQ
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At HelloSafe, our expert has been tracking the performance of Legal & General for over three years. Every month, over a million users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Legal & General.
What is Legal & General?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | Long-standing UK financial group serving pensions, insurance, and asset management markets. |
| 💼 Market | London Stock Exchange | LGEN benefits from strong listing, liquidity, and broad institutional investor presence. |
| 🏛️ ISIN code | GB0005603997 | Global identification code, ensures transparent trading and efficient settlement for investors. |
| 👤 CEO | António Simões | Since 2024, focused on growth strategy and private markets expansion for Legal & General. |
| 🏢 Market cap | £14.73 billion | Large-cap status but currently valued below all-time highs, offering recovery potential. |
| 📈 Revenue | £11.97 billion (TTM) | Diverse revenue base, anchored by asset management and institutional retirement divisions. |
| 💹 EBITDA | £1.616 billion (core op. profit) | Stable profitability, despite macro headwinds, supports dividend and buyback programmes. |
| 📊 P/E Ratio (Price/Earnings) | 83.77 (TTM), 10.28 (Forward) | High trailing P/E due to earnings disruptions, but forward P/E signals improving outlook. |
The Legal & General share price
The price of Legal & General stock is rising this week.
Currently, Legal & General is trading at 251.20p per share, reflecting a 1.41% increase over the last 24 hours and posting a weekly change of +1.37%. The company has a market capitalisation of £14.73 billion, with an average three-month volume of 25.12 million shares. It shows a P/E ratio of 83.77, a strong dividend yield of 8.62%, and a beta of 1.16, indicating moderate price fluctuations.
This combination of income potential and recent price momentum makes it an attractive choice for investors seeking stability and growth.
Our full analysis of Legal & General stock
After reviewing Legal & General’s latest financial results and evaluating its stock trajectory over the past three years, we have synthesised multiple streams of analysis—ranging from financial metrics and technical signals to sector data and peer benchmarks—leveraging our proprietary algorithms. This comprehensive approach offers deep, actionable insights into Legal & General’s current market position. So, why might Legal & General stock once again become a strategic entry point into the UK financial services sector in 2025?
Recent performance and market context
Legal & General has demonstrated considerable strength in its price performance, advancing to 251.20p per share, a 1.41% gain over the most recent 24 hours and maintaining upward momentum with a 9.29% gain year-to-date. This resilience is particularly noteworthy given a challenging market environment and renewed competition within the UK insurance and asset management sectors. Over the last six months, the stock has appreciated 9.67%, outperforming sector benchmarks and highlighting investor confidence as it edges closer to its 52-week high of 266.20p.
Positive recent events, including the successful execution of a £500 million share buyback programme, have amplified Legal & General’s market appeal. The appointment of António Simões as CEO at the start of 2024 has also marked a pivotal moment, reinvigorating strategy around digitally driven efficiency, private-market growth, and international expansion. Broadly, the macroeconomic landscape is tilting in favour of established UK financials, with resilient consumer savings, supportive regulatory frameworks, and a gradual recovery of UK pension assets all contributing to an environment where Legal & General’s business model can thrive.
Technical analysis
The technical picture for Legal & General appears decidedly bullish. The share price is trading consistently above all major moving averages: 5-day (254.00p), 20-day (254.60p), 50-day (246.13p), 100-day (235.86p), and 200-day (224.15p), confirming both short- and long-term uptrends. The 14-day RSI stands at 60.38, a healthy level that signals sustained buying interest without imminent risk of overextension.
Meanwhile, the MACD (2.33) continues to generate buy signals, reinforcing momentum. The Williams %R indicator—at -26.92—further validates recent strength, and key support is established at 248.93p. With resistance at 266.20p, Legal & General is positioned for a potential breakout should new catalysts emerge. The overall technical consensus strongly favours further upside, with a “Strong Buy” rating from 16 out of 22 technical signals, adding conviction for investors seeking a robust entry point.
Fundamental analysis
Legal & General boasts a compelling set of fundamentals underpinned by robust revenue generation, a resilient profit profile, and exemplary capital management. Over the past twelve months, the group produced £11.97 billion in revenues and posted a 6% year-on-year increase in both core operating profit (£1.616 billion) and earnings per share. Its ability to slightly exceed analyst consensus in the most recent reporting period demonstrates both prudent execution and operational discipline.
Legal & General’s return on equity stands at 4.1%, with a substantial gross profit margin of 21.3%, indicative of strong underwriting and asset management returns. While its trailing P/E ratio of 83.77 may appear elevated due to one-off earnings adjustments, a forward P/E of 10.28 points to highly attractive valuation levels, particularly for a blue-chip with demonstrated resilience. The price/book and price/sales ratios (4.09 and 0.71, respectively) reflect healthy market multiples that are justified given Legal & General’s market leadership and recurring revenues.
The firm’s dividend track record further distinguishes it: an annual distribution of 21.36p, offering an outstanding yield of 8.62%, with 15 consecutive years of dividend growth. In strategic terms, Legal & General’s leadership in the bulk annuity segment, rapid expansion across private markets, and ongoing digital transformation initiatives bolster its status as a forward-thinking, innovative player at the forefront of industry trends.
Volume and liquidity
Liquidity continues to be a significant advantage for Legal & General. With an average three-month daily volume of 25.12 million shares and a public free float of over 5.4 billion shares, the stock enjoys strong institutional participation and steady retail engagement. Such volume translates into minimal transaction costs, tight bid-ask spreads, and robust price discovery—in essence, a dynamic environment that allows investors to enter or exit positions efficiently. This sustained trading activity serves as both a barometer of confidence and a mechanism for more dynamic valuation adjustments as Legal & General continues to execute its growth strategy.
Catalysts and positive outlook
Multiple catalysts are poised to continue driving Legal & General higher. The company’s commitment to private markets is expected to materially boost its fee-generating potential, with AUM targets set to escalate from £57 billion (2024) to £85 billion by 2028—an ambitious but credible pathway, supported by the successful ramp-up of the Private Markets Access Fund and new international partnerships.
Additionally, the group’s bulk annuity business is capturing disproportionate share in a market forecast to process £45 billion of annual transaction volumes over the coming decade. Its £10 billion YTD volumes in 2025 and £50 billion target for 2028 indicate a fast-growing, high-barrier space in which Legal & General has first-mover advantages. Recent acquisitions and a continued focus on ESG—evident in portfolio commitments to net zero by 2050, and ahead-of-schedule interim targets—also position the company as a partner of choice for global asset owners and institutional clients.
Broader supportive trends include government emphasis on UK pension funding adequacy, resilient demand for insurance and retirement products, and evolving regulatory regimes that favour consolidation and scale. Further, a strong capital generation plan—£5-6 billion between 2025 and 2028—underscores management’s confidence in ongoing cashflow and paves the way for future returns to shareholders.
Investment strategies
- Short-term: Technical signals align for a potential continuation higher, with the stock currently hovering near support and trending above all key moving averages. Entry at or just above 251p may provide tactical traders with upside toward the 266p resistance, especially as positive sentiment builds ahead of the next earnings report.
- Medium-term: For investors eyeing 12-24 month horizons, the company’s 6-9% guided core EPS growth, alongside scalable expansion in private markets, suggests the potential for both capital gains and growing dividends. Any sector-related volatility can be regarded as an opportunity for accumulation, given the stock’s defence via yield and market share.
- Long-term: Legal & General’s core advantages—a 15-year dividend growth streak, fortress solvency ratios, digital innovation strategy, and broad-based market dominance—underscore its suitability as a core holding within pension portfolios, ISAs, and other vehicles prioritising stability and total returns.
Is it the right time to buy Legal & General?
On balance, the structural and cyclical arguments for Legal & General are highly compelling. The group combines reliable capital returns, renowned operational excellence, technical strength, and clear strategic vision. With the stock currently offering an 8.62% yield, a reasonable forward P/E, and high liquidity, all signs point to Legal & General resuming an upward trajectory and potentially breaking new ground as upward catalysts play out.
The attractive entry point, compared to historic and target levels, coupled with impressive management execution and enduring institutional interest, sets the foundation for a new, bullish phase. For investors seeking a blend of growth, income, and sector resilience within the UK market, Legal & General’s positioning justifies serious renewed interest.
Legal & General seems to represent an excellent opportunity for those aiming to participate in the next phase of growth within the FTSE 100’s financial and insurance segment. The convergence of technical, fundamental, and strategic strengths could make this stock a prime candidate for portfolio inclusion as market conditions evolve.
How to buy Legal & General stock in the United Kingdom?
Buying Legal & General stock online is both simple and secure when you use a regulated UK broker. There are two straightforward ways to access this stock: you can purchase shares directly (spot buying) to become a shareholder, or you can trade Contracts for Difference (CFDs) for more flexibility and leverage. Each method suits different investing styles, and you can find a comparison of reputable brokers further down this page.
Spot buying
Spot buying means you acquire Legal & General shares to hold in your investment account. This gives you direct ownership and makes you eligible for dividends and shareholder rights. Most brokers charge a small fixed commission per order—usually between £5 and £10—plus the government’s Stamp Duty (0.5%) on UK shares. Spot buying is ideal for long-term investors focused on steady growth and income.
Gain scenario: Legal & General share price
If the Legal & General share price is 251p, you can buy around 397 shares with a £1,000 stake, including a brokerage fee of about £5.
Gain scenario:
If the share price rises by 10%, your shares are now worth £1,100.
Result: +£100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFDs allow you to trade Legal & General shares without owning them. You can speculate on price movements up or down and use leverage to increase your exposure. Fees include the spread (difference between buy and sell price) and overnight financing if a position is held past one day. This method is popular for short-term strategies and gaining more market access with less upfront capital.
CFD Leverage Example: Gain Scenario
You open a CFD position on Legal & General shares, with 5× leverage. This gives you market exposure of £5,000 for a £1,000 deposit.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +£400 gain, on a bet of £1,000 (excluding fees).
Final advice
Before you invest, take time to compare brokers’ fees, platforms, and investing conditions to find what best fits your needs. The choice of method depends on your objectives, whether you prefer to hold shares for the long term or take a more active trading approach with leverage. Don’t forget—a detailed broker comparison is available further down the page to help you choose wisely.
Compare the best brokers in the UK!Compare brokersOur 7 tips for buying Legal & General stock
| 📊 Step | 📝 Specific tip for Legal & General |
|---|---|
| Analyse the market | Assess Legal & General’s financial results, sector leadership, and strong dividend track record before investing. |
| Choose the right trading platform | Use a trusted UK broker with low fees and LSE access to trade Legal & General shares efficiently. |
| Define your investment budget | Set a clear budget and consider Legal & General’s size and stability as part of a diversified portfolio. |
| Choose a strategy (short or long term) | Decide if you want to benefit from Legal & General’s long-term dividend growth or short-term technical trends. |
| Monitor news and financial results | Follow quarterly earnings and major company updates to stay informed about Legal & General’s performance. |
| Use risk management tools | Implement stop-loss orders and review portfolio exposure to manage risk with Legal & General. |
| Sell at the right time | Plan your exit when Legal & General approaches technical highs or after key positive financial news. |
The latest news about Legal & General
Legal & General’s share price climbed 1.41% over the past week, finishing at 251.20p on July 3, 2025. This positive movement keeps the stock trading near its 52-week highs and is supported by sustained local investor activity and steady market confidence in the resilience of the UK financial sector.
Technical sentiment remains robust, with Legal & General maintaining a Strong Buy consensus among analysts in the UK market. The stock is currently above all major moving averages, with the MACD and Williams %R indicating a continuation of bullish momentum and ongoing accumulation by institutional and retail investors.
Legal & General confirmed a 15-year streak of dividend growth, with a recent payment of 21.36p per share. The dividend was paid on 5 June 2025, reinforcing the attraction of the stock to UK income-focused portfolios and underlining management’s long-standing commitment to rewarding shareholders directly.
Recent capital management actions in the UK, including a £500 million share buyback, highlight further shareholder value creation. This ongoing programme reflects the company’s strong capital position, with a solvency coverage ratio increasing to 232%, providing both reassurance and financial flexibility for future investment and growth.
Legal & General continues to outpace sector growth through UK-based institutional pension transfers and asset management expansion. Current business volumes are strong, and updated 2025 guidance expects core operating EPS growth between 6% and 9%, driven by leading positions in the annuities and asset management markets, which are fundamental to domestic long-term demand.
FAQ
What is the latest dividend for Legal & General stock?
Legal & General currently pays a dividend, with the latest declared amount at 21.36p per share. The most recent payment was made on 5 June 2025. Notably, the company has maintained a 15-year record of consecutive dividend growth, reflecting both strong cash generation and a shareholder-friendly distribution policy.
What is the forecast for Legal & General stock in 2025, 2026, and 2027?
Based on the current share price, projections are 326p for end of 2025, 377p for end of 2026, and 502p for end of 2027. This outlook is underpinned by Legal & General’s robust business fundamentals, growth plans in asset management and bulk annuities, and sustained long-term sector demand.
Should I sell my Legal & General shares?
Holding Legal & General shares remains rational for many investors given the company’s proven resilience, attractive valuation, and well-established role in the UK financial sector. Consistent performance, solid capital returns, and clear strategic targets suggest that continued ownership may support long-term portfolio goals.
Are Legal & General shares eligible for an ISA or SIPP, and how are they taxed in the UK?
Legal & General shares are eligible for inclusion in both ISAs and SIPPs. When held within these tax-efficient accounts, any dividends or capital gains are free from UK tax, subject to annual allowance limits. Dividends received outside these wrappers are taxable according to current UK dividend tax rates.
What is the latest dividend for Legal & General stock?
Legal & General currently pays a dividend, with the latest declared amount at 21.36p per share. The most recent payment was made on 5 June 2025. Notably, the company has maintained a 15-year record of consecutive dividend growth, reflecting both strong cash generation and a shareholder-friendly distribution policy.
What is the forecast for Legal & General stock in 2025, 2026, and 2027?
Based on the current share price, projections are 326p for end of 2025, 377p for end of 2026, and 502p for end of 2027. This outlook is underpinned by Legal & General’s robust business fundamentals, growth plans in asset management and bulk annuities, and sustained long-term sector demand.
Should I sell my Legal & General shares?
Holding Legal & General shares remains rational for many investors given the company’s proven resilience, attractive valuation, and well-established role in the UK financial sector. Consistent performance, solid capital returns, and clear strategic targets suggest that continued ownership may support long-term portfolio goals.
Are Legal & General shares eligible for an ISA or SIPP, and how are they taxed in the UK?
Legal & General shares are eligible for inclusion in both ISAs and SIPPs. When held within these tax-efficient accounts, any dividends or capital gains are free from UK tax, subject to annual allowance limits. Dividends received outside these wrappers are taxable according to current UK dividend tax rates.
