Authorized & Normal Group (LSE: LGEN) shares go ex-dividend on 24 April. As somebody with an enormous stake within the high-yielding FTSE 100 inventory, the date is marked on my calendar.

Personally, I received’t be dashing to purchase extra earlier than the deadline, however solely as a result of I already maintain a hefty chunk. Additionally, shopping for simply earlier than an ex-dividend date isn’t at all times a win. The share price sometimes drops by the worth of the dividend on the day, so buyers aren’t getting one thing for nothing. Nonetheless, for long-term buyers trying to take a place, as we speak could also be a very good time to contemplate shopping for.

As an insurer, pensions, and asset administration agency, Authorized & Normal is of course uncovered to inventory market volatility. In comparison with others within the sector, it’s held up tolerably effectively. The shares are down round 6% over the previous month and about 7% yr on yr. Not preferrred, however hardly a catastrophe within the present local weather.

The Authorized & Normal share price has drifted sideways for years. What makes it stand out is that mouth-watering 9.02% trailing yield, roughly double what I’d get from bonds or financial savings accounts. The distinction is that my capital is in danger. Plus issues over whether or not such a beneficiant payout could be maintained.

Is that this FTSE 100 inventory a discount as we speak?

Full-year ends in March have been reassuring. The group confirmed a £500m share buyback programme for 2025, a part of a wider plan to return over £5bn to shareholders throughout three years. That’s roughly 40% of its market cap. The trade-off is that annual dividend development will sluggish from round 5% to 2%. Given the excessive yield, I’d be relieved in the event that they managed that.

Just a few weeks in the past, I’d have mentioned the dividend regarded fairly stable. As we speak, I’m just a little extra cautious. As commerce wars spook markets, there’s no telling what’s subsequent. Dividend cowl can be skinny at simply 1.1. One other concern is that three years of sliding earnings per share have pushed up the price-to-earnings ratio to a staggering 80.

Authorized & Normal is increasing within the US. In February, it introduced a £2.3bn cope with Meiji Yasuda to promote its US safety enterprise and launch a three way partnership centered on pension danger and asset administration. That sparked some pleasure, though as we speak’s craziness could take the sting off it.

I can see why some buyers would possibly take into account shopping for the current dip. The corporate’s robust money technology, sturdy steadiness sheet, and clear technique make it one of many extra comforting holds in my portfolio proper now. Though, there isn’t a lot competitors on that entrance in the meanwhile!

The 16 analysts monitoring the inventory have a median 12-month price goal of just below 266p. That’s greater than 12% above as we speak’s 237p. Add within the dividend, and the potential complete return creeps above 20%. That sounds nice however on this market forecasts are flimsier than ever. I’d be thrilled to get that type of return from right here.

Nonetheless, my dividend lands on 5 June, value 15.36p for every share I personal. I’ll reinvest it straight again into Authorized & Normal. And I’ll proceed doing that each six months for years — many years if I’m fortunate. I’m crossing my fingers that someday, the share price springs into life too.