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Leggett & Platt Inc. may be known for its bedding products. May it be from springs, specialty foams, adjustable beds, to furniture, flooring and textile products.
But for investors, Leggett & Platt is a Dividend King (a company which has posted strong results and raised its dividends for 50+ consecutive years).
One of the oldest companies in America, Leggett & Platt designs and produces various engineered components and product that can be found in homes and automobiles.
Founded in 1883, in Carthage, Missouri, J.P. Leggett developed a bedspring which consisted of single cone spring wire coils which were formed and interlaced and mounted on a wood slat base. The bedspring could then be used as a base with cotton, feather or horsehair mattresses.
Needing some help in manufacturing and production, he recruited C.B. Platt, who would eventually become his brother-in-law.
And they would patent their components which would become the Leggett & Platt bedspring.
The business prospered and they would incorporate in 1901.
So much that more factories were built and would then begin to manufacture springs for innerspring mattresses and then diversifying by producing rollaway beds with folding metal cots, bed frames and bed rails.
By 1967, their stock was traded over the counter and in 1979, their stock was listed on the New York Stock Exchange. In 1999, Leggett & Platt Inc. (NYSE: LEG) would be listed on the S&P 500 Index.
And as of 2021, the company has 145 manufacturing facilities in 18 countries.
Looking at Leggett & Platt Inc.’s growth since 1980, the company has continually increased. In fact, the only major dips tend to ha happened during the market crash of 2007-2008 and during 2020 (the novel coronavirus pandemic).
Currently, the stock is priced at $50.46 with a market cap of $6.5 billion and an enterprise value of $8.2 billion and has 133.2 million shares outstanding, with 74% held by institutions.
Leggett & Platt Inc is a leading U.S. based manufacturer of bedding components (48%), automotive seat support and lumbar systems (18%), specialty bedding foams and private-label finished mattresses (17%), compontents for home furniture (8%) and work furniture (5%), flooring underlayment, adjustable beds and bedding industry machinery. This is based on 2021 estimated net trade sales.
Currently, LEG has a Schwab Equity Rating of C. Ned Davis Research is set as a Buy, CFRA’s opinion has a 3-star rating, Reuters Research Average Rating is set to Outperform and Market Edge Second Opinion Weekly is rated as Long.
But in order for Leggett & Platt Inc. to become a Dividend King, not only is growth to be important but so is its dividend payments.
Currently, Leggett & Platt Inc. pays an annual dividend of $1.68 and a quarterly dividend of $0.42 with an Annual Dividend Yield of 3.43%.
As you can see from the chart, the company has continued to increase their dividend payments for 50 years annually.
Leggett & Platt Inc. has a strong balance sheet & cash flow, disciplined use of cash, and the company has opportunities for long-term growth with internal initiatives, market growth, acquisitions, large addressable markets.
The company targets 6-9% average annual revenue growth (organic + acquisition) and has three avenues of growth by increasing content and new programs, expanding addressable markets and identifying strategic acquisitions.
Leggett & Platt Inc. also lists its long-term cash use as priorities: Fund organic growth, pay dividends, fund strategic acquisitions and the repurchasing of stock with available cash.
I am invested in Leggett & Platt Inc. and I believe in the company’s continual growth and dividend growth. It’s joins the list with a few dozen companies of having the title of “Dividend King”. And I plan to invest in this stock in the Consumer Discretionary Sector for the long-term.
As always, perform your due diligence and do a lot of research before investing. Talk to a financial advisor and find out if Leggett & Platt Inc. (NYSE: LEG) would be a perfect investment for you.
