One to Watch

LEGAL & General, one of the UK's biggest financial services firms, published its preliminary results for 2009 earlier this week which showed the company has made significant progress following the credit crisis. L&G has operations in the US, France, Germany and the Netherlands together with the UK and has more than 6.5 million customers who rely on it for life assurance, pensions, investment and general insurance products.

The results showed operating profit up 87 per cent and cash generation, previously expected to be about 650 million, rising to 699m compared to 320m in 2008. L&G increased the final dividend by one third, reflecting the underlying growth in the net cash and showing confidence in its sustainability.

The company trades at a substantial discount to its embedded value of 114p a share but this gap can be expected to narrow as analysts and investors confidence increase. Although sales for the group fell 7 per cent, each business delivered higher profits.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

National Grid

643p +11.5p

Broker says BUY

KILLIK & Co is advocating a switch from United Utilities into National Grid, which is the firm's "preferred utility".

The broker said: "National Grid will provide yield uplift to 6.5 per cent for the 2010-11 financial year and has a policy to grow its dividend by 8 per cent per annum until 2012."

Kingfisher

225.8p -2.7p

Broker says BUY

KINGFISHER, which owns B&Q, is rated a "Buy" by Glavan.

Head of trading Ed Woolfitt said: "With growth seen in virtually all its markets, the momentum is very much with Kingfisher now and, the cautious outlook notwithstanding, we are projecting a return to year highs of 249p and beyond."