As dividend stocks go, Prudential and Legal and General both have mixed track records.
On the one hand, they operate in a sector which is relatively immune to the economic cycle (people don’t typically cancel their life insurance just because there’s a recession).
On the other hand, and despite their blue chip credentials, Prudential cut its dividend following the bear market of 2003 and Legal and General cut its dividend following the bear market of 2008.
However, if these insurers have learned the right lessons, and if their shares are trading at reasonable prices today, then I think the potential yield plus growth rewards could be worth the risk.
With that in mind, I used my latest article for Master Investor magazine as an opportunity to pit these two life insurance giants against each other to see who comes out on top.