9% yield! I’d buy Legal & General shares for big dividend income

The FTSE 100 is home to some of the best dividend shares on the planet, in my opinion. Many of these big-cap giants have been in business for decades. And having reached a more mature stage of their journey, they’ve become dividend-paying experts.

For instance, consider Legal & General Group (LSE:LGEN). This is the top dividend share that I’d buy in my Stocks and Shares ISA if I had some spare cash to deploy. It currently offers a whopping 9% dividend yield.

Solid track record

Usually, I’d be a tad wary when I see a jumbo yield like this. Dividend payments aren’t guaranteed, and a large yield might not be sustainable.

But allow me to explain why I don’t think the concern is warranted in this case.

Legal & General shares have one of the best track records for dividend payments that I’ve come across. The company has diligently been paying out cash to shareholders for decades.

Rising dividends are key

In addition, it has built a decent record of growing its payout over time. It’s not perfect, though. The financial crisis in 2008 led to a dip in dividends, and the 2020 pandemic led to a pause.

Yet apart from those examples, it has seen steady growth. But what does that really mean? Well, back in 2013, this financial services firm paid 9.3p in annual dividends. And its shares traded for around £2 a share.

Right now, the shares aren’t trading much higher, reflecting a mature business. But note that this year, the company expects to pay around 20p. If I bought these shares a decade ago, my annual dividend income would have doubled by now.

By adopting a long-term approach, my investment would literally have paid dividends.

Often, a consistently high dividend might not be affordable for many companies. But in this case, Legal & General’s dividend cover has remained strong and stable – sufficiently backed by solid earnings.

Looking ahead

But what now? I think the fundamental story for Legal & General remains intact. It operates several strong businesses spanning pensions, investments, insurance and related services.

An ageing population should keep it busy for decades to come, in my opinion. In addition, its long-standing reputation should make it difficult for competitors to take market share.

Bear in mind that parts of the business are directly linked to equity and credit markets. Soaring interest rates has been known to lead to a sharp recession in the past. And as the current economic climate remains uncertain, it might hamper L&G’s share price recovery.

But I’m not really expecting a soaring Legal & General share price in the long term. Instead, I’d buy this for its large and growing dividend income.

Finally, it may be seen as a boring business. But when it comes to dividends, boring is often best.