Legal and general (LSE: LGEN) Shares are a very popular investment. It’s not hard to see why – it offers a dividend yield of about 9.2% today.

However, if you are considering investing in the insurance giant, there are some risks you should be aware of. Here are some things to know about FTSE 100 index Stocks and their huge returns.

Is the return too good to be true?

When a stock offers a huge dividend yield, it may be a signal that the market views the dividend as unsustainable. Large institutional investors (“smart money”) may have bailed out the stock, pushing its share price down and its yields up.

Now, looking at the legal and public issues, the issue of payment sustainability is coming into focus. Because the company’s profits no longer cover dividends (for 2025, earnings per share amounted to 20.93 pence, while earnings per share amounted to 21.79 pence).

This problem was raised by analysts in UPS newly. They argue that Legal & General is currently paying more than it can afford, noting that dividends are unlikely to cover profits between now and 2030.

Worryingly, UBS analysts – who currently have a target price of 250p per share – noted that in a scenario of extreme market stress, Legal & General’s solvency ratio (an important measure of insurers’ financial health) could fall significantly. This could result in the company having to cut its dividend to strengthen its balance sheet.

Can the stock price fall?

Now, UBS isn’t the only broker that has some concerns about stocks right now. Another is RBC Capital. Last week, it cut its earnings forecast for the insurer and cut its price target to 220p. This is clear less Current stock price.

If the stock falls to this level, investors could see any dividend income offset by stock price losses. This is not ideal.

RBC analysts – who have an Underperform rating on the stock – are concerned about the company’s momentum in the pension risk transfer market (where insurers assume companies’ pension liabilities in exchange for a premium). You see that competition is increasing here as many competitors are aggressively trying to gain a share of the market.

Still worth considering?

Now, just because these two brokers have expressed some concerns about the stock and its earnings doesn’t mean it’s not worth considering. If an investor is comfortable with the risks here – which include weak share prices and lower-than-expected dividend income – it may still be worth considering, given the high yield currently on offer.

I will note that the company’s valuation is very reasonable. Currently, the forward-looking price-to-earnings (P/E) ratio is less than 10.

However, this is not a stock in which I would take a large position. While dividend yields look attractive today, there are certainly some risks beneath the surface and investors may see a decline in dividends in the coming years.

In my view, there are safer income stocks on the market today.