I have trying to save money for a new house whilst also adding to my dividend holdings in my stocks and shares ISA. One cheap UK dividend stock with a decent yield has just been added to my watchlist. I have selected this particular stock because it is priced at less than 300 pence per share. This means I can get 100 of them reasonably cheaply. However this is not the only reason I have pinpointed this particular company.
The company I am talking about is Legal and General, stock ticker LGEN. This is a life insurance company with a current share price of 269 pence. The stock had a recent high price of 296 pence on the 24th March and a low of 209 pence last year, oh how I wish I had bought some then. The sp did drop today and I am going to watch it closely to see if it drops much more. I would love to buy some of these at under 250 pence.
This company seems fairly stable with small fluctuations in the share price. I would be buying in for the dividend income, which I would of course reinvest back into the company again. The dividend payment per share has been growing for the last few years and the latest recorded was 11.25 pence a share. The current dividend yield is around 4.5% although was as high as 6.2% four years ago.
Payday is next week and I always love treating myself to a new FTSE 100 stock after I get paid. The interim ex-dividend date is always in August and paid by the end of November. Buying this stock in May or June is probably best before the share price starts to rise coming up to ex-dividend date.
I will be holding £300 of my cash for this stock including fees. I will update everyone if and when I decide to buy in. I will be aiming for over 100 shares in this stock.