1.Legal & General Group Plc
LGGNF (OTC)
Legal & General Group Plc stands out as an attractive option for investors seeking reliable income, boasting an impressive dividend yield of 8.32% alongside nearly two decades of uninterrupted dividend growth. The company’s strong ESG credentials and substantial core operating profit forecast of £1.6bn in 2024 further enhance its appeal. Despite a 5-year return of -2.70%, the stock has delivered a robust 20.40% return over the past year, reflecting its resilience in the financial services sector.
Pros:
- Strong ESG credentials
- Nearly 20 years of uninterrupted dividend increases
Cons:
- Negative 5-year return
- Market volatility risk
2.RELX
RLXXF (OTC)
RELX stands out as a UK-based leader in business information and analytics, reinforced by strong ESG management and a robust governance framework. With a dividend yield of 1.79%, it remains an attractive option for investors seeking reliable income despite a recent 1-year return of -22.22%. Analysts show confidence in the stock, with upgrades from Goldman Sachs and Citigroup, reflecting its wide economic moat and sustainable growth potential.
Pros:
- Strong ESG management practices
- Wide economic moat
Cons:
- Negative 1-year return
- Market volatility risk
3.Royal London Global Sustainable Equity Fund
OEIC (LON)
The Royal London Global Sustainable Equity Fund, a leading sustainable equity strategy managed by Mike Appleby and George Crowdy, emphasizes investment in financially healthy companies. With a robust focus on sustainability, this fund has attracted £2.6 billion in assets under management, showcasing its appeal to responsible investors. Although financial data is not available, its strategic approach positions it favorably in the market for those seeking long-term growth while aligning with sustainable practices.
Pros:
- Flagship sustainable equity strategy
- Strong asset management with £2.6 billion
Cons:
- Lack of specific performance data
- Potential market volatility
4.Trojan Ethical Fund
OEIC (LON)
The Trojan Ethical Fund stands out as a UK-based investment option focused on socially responsible companies. With an emphasis on ethical investing, it aims to deliver strong returns while maintaining a commitment to sustainability. Although specific financial data is currently unavailable, its ethical strategy positions it as a noteworthy choice for investors seeking to align their portfolios with their values.
Pros:
- Focus on socially responsible companies
- Low expense ratio of 0.84%
Cons:
- Lack of specific performance data
- Potential market volatility
5.City of London Investment Trust
BA69.L (LSE)
The City of London Investment Trust stands out with a remarkable 59-year history of increasing dividends, showcasing its commitment to delivering reliable income to investors. Currently, it offers a dividend yield of approximately 6.82%, though analysts predict a slight decline in the share price over the next year. This investment trust is ideal for those seeking sustainable income through manageable quarterly payouts from financially healthy companies.
Pros:
- 59-year streak of rising dividends
- Sustainable income with manageable payouts
Cons:
- No growth in 1-year and 5-year returns
- Market performance uncertainty
Final Words
As you consider the best socially responsible investment stocks this January, keep in mind the potential of companies like Legal & General Group Plc. Take time to compare your options and conduct thorough research to align your investments with your values and financial goals.
Frequently Asked Questions
Legal & General Group Plc is a diversified financial services company with strong ESG credentials, offering a 8.32% forward dividend yield backed by nearly 20 years of uninterrupted dividend increases. It has a market cap of $20.27 billion and reported a core operating profit of £1.6 billion in 2024.
The ticker symbol for Legal & General Group Plc is LGGNF. This stock is traded on the OTC market.
In the past year, Legal & General Group Plc has achieved a 20.40% return. This strong performance reflects its robust business model and consistent dividend growth.
Investing in Legal & General Group Plc carries risks typical of the financial services sector, including market volatility and regulatory changes. It's essential to evaluate your risk tolerance and investment goals before investing.
Legal & General Group Plc distributes dividends quarterly. The next dividend is expected to be $0.0828.
ESG credentials are increasingly important as they reflect a company's commitment to environmental, social, and governance practices. Investing in companies with strong ESG policies can align your portfolio with ethical values and potentially lead to more sustainable returns.
To compare socially responsible investment stocks, consider factors such as dividend yields, historical performance, market capitalization, and the company's ESG ratings. Additionally, assess how well each company aligns with your personal values and investment objectives.
