I own Legal & General (LSE:LGEN) shares in my portfolio for passive income. With a dividend yield consistently above 8%, and payouts that have risen in 15 of the last 16 years, it’s easy to see the appeal.

In fact, it’s one of the FTSE 100‘s best dividend stocks in my opinion. And the good news is City analysts expect cash rewards to keep rising over the medium term at least.

If forecasts are accurate, a £20,000 investment in Legal & General shares today will deliver £1,714 in dividends in 2026 alone. But dividends are never, ever guaranteed, so how robust are these estimates? And should I buy more stock in the company anyway?

Growing dividends

In 2025, Legal & General paid a total dividend of 21.79p per share. Analysts are predicting this will increase to:

• 22.23p in 2026
• 22.78p in 2027
• 23.42p in 2028

If these forecasts prove correct, investors could enjoy a substantial stream of cash — with dividends reinvested, a £20k lump sum invested today would provide a total income of £5,754 over the three years.

At Legal & General’s current share price of 259.4p, annual dividend yields range from 8.6% to 9% between now and 2028. To put that in context, the FTSE 100’s average yield sits way back at 3%.

Financial strength

But what are the chances of these dividend forecasts being met? As a Legal & General shareholder myself, I’ve got to concede that dividend cover isn’t as robust as I’d like.

For the next three years, predicted dividends are covered between 1 and 1.3 times by anticipated earnings. That falls well short of the widely accepted safety benchmark of two. If profits are blown off course, there could be problems.

So why am I not worried? With a robust balance sheet, Legal & General’s in great shape to hit its dividend growth target of 2% a year over the medium term. Its Solvency II capital ratio sits at 176%, which is also supporting a steady flow of share buybacks.

So what’s the catch?

I don’t think dividends are in danger of missing forecasts, certainly not in the immediate term. But that’s not to say Legal & General shares don’t carry risk.

Unlike rivals such as Aviva, this FTSE 100 stock doesn’t have a sprawling general insurance division. Its focus is on cyclical product segments like life insurance, asset management, and pensions. The downside? Profits are more vulnerable during economic downturns when consumers cut back, and the share price can slump.

However, this doesn’t worry me as a long-term investor. Over the next decade or so, I’m confident earnings will soar as favourable trends — like growing and ageing populations, and rising interest in financial planning — kick in. With excellent brand power and a broad product suite, Legal & General’s well placed to seize this opportunity.

And in the meantime, I can be extremely confident of more large dividends rolling into my investment account. I’ll be looking to buy more shares when I next have spare cash to invest.