Legal & General and ASX retail stocks face valuation scrutiny

In the United Kingdom, Legal & General Group Plc, a major FTSE 100 pension and savings group, currently offers a dividend yield of 7.3% based on its 2025 payout. While the company has maintained a consistent dividend record since 2009, some analysts express caution regarding its valuation. Citi suggests the stock may be expensive following a 22% rally since May, and UBS has raised concerns regarding margins in the group’s bulk annuity business.

In Australia, retail growth stocks Lovisa Holdings Ltd and Universal Store Holdings Ltd are being compared for investment potential. Lovisa, a fast-fashion jewellery specialist with over 1,136 stores in 50 countries, maintains a market capitalization of $2.5 billion and a dividend yield of 3.8%. Investors evaluating Lovisa are currently looking at a price-to-earnings ratio of 26.21.