As one of many small private shareholders in Legal & General (LSE: LGEN), I am hopefully set to earn my own passive income streams from the FTSE 100 financial services company. I think there is a lot to like about the Legal & General dividend. Here are three of those things.

Reason 1: dividend set for ongoing growth

The last time the Legal & General dividend was cut was during the 2008 financial crisis. Since then, apart from one year during the pandemic when it was held flat, we have seen an annual increase in the dividend per share.

In recent years, that increase has been running at around 5%. The firm has announced a dividend policy that foresees an annual increase of 2% in coming years.

On one hand, that is disappointing. It means a lower rate of growth than before even though the company has excess cash (it has recently bought back several hundred million pounds’ worth of its own shares).

On the other hand, a rise is a rise. The Legal & General board has set out its intention to keep growing the dividend annually and while payouts are never guaranteed at any company, I am confident Legal & General will deliver on its plan.

Reason 2: solid business underpinning the payout

One of the reasons for my confidence is the source of the Legal & General dividend.

The long-established business operates in an area that I expect to see sustained high demand for decades to come: retirement-linked financial services. That includes areas such as asset management and insurance.

Thanks to its strong brand, deep sectoral expertise, and large customer base, I see Legal & General as having a strong ability to compete in this field both now and in the future. That should help it continue to make profits, something it has done consistently in recent years.

Will that happen?

Recent performance has been mixed. Profit after tax attributable to equity holders was 41% lower in the first half than in the equivalent period last year, while operational surplus generation also fell although by a far smaller percentage.

If there is a market downturn, I see a risk that policyholders may decide to pull funds, hurting profits at Legal & General. As a long-term investor, though, I reckon the business has strong cash flow generation potential.

Reason 3: £94 in annual income for each £1K invested

Right now, the Legal & General share price (down a fifth in the past five years) makes for a dividend yield of 9.4%. That means that, for every £1K put in, hopefully the firm would pay £94 in annual dividends. That is before even factoring in the positive impact of the planned rises.

Dividends are never guaranteed and only time will tell what will happen to the Legal & General payout. But from an income perspective, I see multiple reasons for investors to consider buying the share.