Legal & General (LSE: LGEN) shares have been pretty poor for years. In fact, they’re trading around levels last seen in 2015, more than a decade ago. The consolation for investors is that they’ve been paid a pile of dividends.

Reinvest those and you’ll be comfortably ahead, although potentially still a bit disappointed. It’s nice to get some growth on top, to bolster the compounding effect.

Rival FTSE 100 insurer Aviva (LSE: AV) has been a much livelier proposition. Its shares surged over the last five years. While they’ve only recently returned to pre-financial crisis levels, recent investors won’t be complaining. The company has dramatically improved its fortunes since Amanda Blanc became chief executive in 2020.

So why has Aviva done so much better than Legal & General, and will that change?

FTSE 100 dividend appeal

Aviva’s built a strong track record of profitable growth, helped by its UK insurance, wealth and general insurance businesses, while the £3.7bn Direct Line takeover gives it another line of attack.

First-half results (14 August) were impressive with operating profit jumping 24% to £1.33bn, while cash remittances surged 47% to £1.5bn. The interim dividend was lifted 7% to 14p.

Legal & General’s first-half numbers (5 August) were positive, although didn’t quite pack the same punch. Core operating profit rose 7% to £918m, beating expectations of £883m. The interim dividend was hiked a modest 2% to 6.24p. Shareholder payouts are likely to rise by a similar modest amount in future.

Recent progress

The Aviva share price is up 85% over the last five years, smashing Legal & General’s miserly 7%. That has reversed over the last 12 months with Aviva growing just 10%, while Legal & General’s up 25%. So it could finally be playing catch-up.

When it comes to income, Legal & General has the edge. Its 7.4% trailing yield is also considerably higher than Aviva’s 5.4%. Both are returning money through share buybacks too, with L&G’s £1.2bn programme particularly meaty. Aviva recently restarted a £350m buyback.

The valuations are too close to call, judging by their forward price-to-valuation ratios. They’re both around 12. Neither’s too demanding.

Risks and rewards

Both face risks. Insurance claims can rise, stock markets can fall and interest rates can move against them. Aviva also has the challenge of integrating Direct Line, while L&G needs to prove it can deliver serious growth.

Broker consensus forecasts are disappointing though. Aviva’s one-year 728p target’s barely above today’s price, while Legal & General’s 270p target is 8% below today’s 295p. Both may have run ahead of expectations.

I bought Legal & General three years ago and I’m sitting on a total return of around 50%, with dividends reinvested. I’d have got roughly double that from Aviva. I’m sticking with my pick in the hope that the cycle will swing in my favour. But I still suspect Aviva is the sharper operation.

For anyone today who only had money for one, I think Aviva is worth a look. Both are worth considering, but more for income than growth, given those low broker forecasts. I can see other FTSE 100 income stocks worth considering instead…

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Harvey Jones owns shares in Legal & General.