Chatgpt Says This Ftse 100 Dividend Yield Of 7.58% Is ‘safe’, Not Bulletproof!

I’m a huge fan of passive income. Hence, my family portfolio is packed with high-yielding dividend shares from the elite FTSE 100 index and the mid-cap FTSE 250. However, a lifetime of experience has taught me that future dividends aren’t guaranteed. Sometimes, they get cut or cancelled at short notice.

Dividend delight?

One high-yielding Footsie stock I often write about is Legal & General Group (LSE: LGEN). Indeed, Legal & General shares lie at the heart of my income-generating portfolio. But what if something goes wrong, forcing the group to cut these cash payouts?

As I write, the shares stand at 288.9p, having traded in a range between their 52-week low of 217.2p (19 March) and their year-high of 318.1p (7 August). At this level, Legal & General is valued at £15.8bn, while the stock offers a juicy dividend yield of 7.58% a year.

Over one year, the shares have jumped by 22.1%, but their price has risen only 5.3% over five years. Both these gains exclude dividends — and I suspect the share price would slump were future payouts to fall.

ChatGPT says

To find out more about the dividend, I turned to OpenAI‘s ChatGPT.

In response to my query asking if L&G’s dividend is safe, this artificial-intelligence agent replied, “Iâd currently rate the dividend as reasonably safe (7.5-8/10 for dividend safety), not bulletproof”. ChatGPT also reported these facts:

• The 2026 interim dividend increased 2% to 6.24p.
• The Solvency II ratio is 201%, well above its operating range of 160% to 190%. Also, management said that even at the bottom of this solvency range, the dividend is sustainable.
• That said, the solvency ratio dropped from 232% in 2024 to 203% in 2025, following asset revaluations and a US disposal.
• Analysts expect a 2026 dividend of 22.19p, up 1.8% from 2025’s 21.79p.
• As an insurer, Legal & General’s capital requirements and asset values (plus global interest rates) are key business drivers.
• The group is conducting a £1.2bn share buyback. This is positive for shareholders, but may restrain investing for growth.

Summing up

ChatGPT’s summary? “I’d be more concerned about the dividend growing slowly than about it being cut… For an income investor, I think [Legal & General‘s] dividend is one of the FTSE 100’s more attractive high yields. The balance sheet is currently strong enough that I would not expect a cut under normal conditions.” I agree.

Then again, earlier this year, ChatGPT stated I was a minor character in the long-running British soap opera Emmerdale. Really? After laughing at this utter nonsense, I then wondered where my royalties were!

I’d add that Legal & General has been managing people’s money since 1836 — a 190-year pedigree. It also has one of the most recognised and respected brands in UK asset management. And its dividend has risen every year since 2015 (bar Covid-ravaged 2020, when it was frozen).

Finally, its success is deeply intertwined with the performance of global financial markets. If share prices were to crash — as they did in 2000-03, 2007-09 and 2020 — then group revenues, profits and cash flow could take a beating. Likewise, volatility in bond prices and higher interest rates could also harm it. But I’ll hold on tight and play the long game.

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Cliff DâArcy has an economic interest in Legal & General Group shares

The post ChatGPT says this FTSE 100 dividend yield of 7.58% is ‘safe’, not bulletproof! appeared first on The Twelfth Magpie.

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