I find it amazing that a few hundred pounds per month can build into a seven-figure portfolio. And by investing in dividend stocks at regular intervals — known as pound cost averaging — I can reduce the stress associated with an ever-fluctuating market. Here, I’ll show how £500 per month can turn into £1m inside a .
Boring but beautiful One of my favourite dividend stocks in my portfolio is ( ). Admittedly, insurance and asset management aren’t the sexiest areas. But I don’t want them to be.
I just need the company to get on with the humdrum work of quantifying risk and making sound investments. If it does that well, which it has for many decades, then dividends will flow. Right now, the forecast for FY24 stands at an incredible 9.
6%. This means I could expect to receive £9.60 back each year from every £100 I invest! Moreover, the stock is trading on a cheap forward-looking (P/E) multiple of 9.
5. So there could also be share price gains in future. That’s not guaranteed though and neither are dividends.
Meanwhile, a global recession would likely reduce demand for its financial services and impact the value of its assets under management. Plus, I should mention that Legal & General shares haven’t really gone anywhere for years. Yet this doesn’t worry me too much given the ultra-high dividend yield on offer.
The company has a really strong and competitive position in its UK markets. It generated surplus cash of £731m in its latest first-half period (easily e.