LGEN share price analysis: is Legal & General a good dividend stock?

Core Viewpoint - Legal & General's stock has shown resilience, increasing by 30% from its lowest point this year, with a current market capitalization exceeding £18.8 billion and a dividend yield of 8% [1][5]. Financial Performance - The company's earnings-per-share (EPS) increased by 9% in the first half of the year, reaching 10.94p compared to 10.07p in the same period last year [2]. - Core operating profit rose to £859 million from £809 million year-on-year, while profit after tax increased to £316 million from £226 million [5]. Business Growth - Growth was observed across its three main sectors: institutional retirement, asset management, and retail, with retail customers exceeding 12.4 million [3]. - Retail assets surpassed £300 billion, with expectations of Workplace DC assets reaching between £40 billion and £80 billion from 2024 to 2028, and a projected compounded annual growth rate (CAGR) of 4% to 6% for retail operating profit during this period [3]. Strategic Moves - The management is simplifying operations by divesting its US protection business and forming a partnership with Meiji Yasuda, alongside selling assets in Corporate Investment Units [4]. - Legal & General has made significant investments, including in Propium Capital Partners, aiming to strengthen its position in the real estate sector [4]. Dividend and Investment Appeal - The company boasts a dividend yield of 8.73%, significantly higher than the FTSE 100 Index average of 3.12% and British inflation at 3.6%, making it attractive for income-focused investors [6]. - The management is focused on cost control, with underlying cost growth at 1%, and maintains a strong capital coverage ratio of 217% [6]. Stock Performance Analysis - The stock price rebounded from a low of 230p to 248p, surpassing a key resistance level of 247p, indicating a bullish trend [7][8]. - The next resistance level to monitor is 260p, representing a 4.8% increase from the current price, while a drop below 240p would negate the bullish outlook [9].