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Leggett (LEG) Impresses Investors With a 4.8% Dividend Hike

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Leggett & Platt, Incorporated (LEG - Free Report) recently announced a hike in dividend payout, maintaining its commitment to increase stockholders’ returns regularly. This move reflects the company’s sound and stable financial position and commitment to rewarding shareholders.

This global manufacturer of engineered components and products announced a quarterly cash dividend hike of 4.8%. This marks Leggett’s 51st consecutive annual dividend increase.

Leggett will pay out a quarterly dividend of 44 cents per share on Jul 15, 2022, to shareholders on record as of Jun 15. The company currently has a dividend payout of 60% and a dividend yield of 4.5%, based on the closing share price of $38.05 on May 17. Shares of the company moved up 2.62% during the trading session on the same day.

Enhancement of Shareholder Value

Leggett has been actively managing cash flows, returning considerable free cash to investors through share repurchases and dividends. In May 2021, the company increased its quarterly dividend to 42 cents per share, marking a 5% rise from the year-ago period’s levels. This places the company among 31 other firms known as "Dividend Kings”. Notably, its long-term targeted dividend payout ratio is approximately 50% of adjusted EPS.

Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments.

Zacks Investment Research
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Shares of the company have declined 7.5% so far this year compared with the industry’s 18.4% fall. Earnings estimates for 2022 have moved 7.6% up in the past 30 days. The trend is likely to continue, given the strength in raw material-related selling prices and acquisitions.

Leggett remains on track with its long-term strategic plan. The company has successfully completed the first two parts of its strategic plan. The first part of the plan was to divest low-performing businesses and the second part comprised an improvement in margins and returns. The company is now working on the third part of the plan that aims to achieve top-line growth of 6-9% annually. This long-term revenue target assumes 6% organic growth, coupled with growth from acquisitions.

Zacks Rank

Currently, Leggett carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Top-Ranked Stocks in the Consumer Discretionary Sector

Adtalem Global Education Inc. (ATGE - Free Report) : This Zacks Rank #1 company is focusing on innovation in product offerings, driving growth in Becker and providing a broad range of options for Association of Certified Anti-Money Laundering Specialists or ACAMS offerings. Adtalem has multiple courses to drive revenues that comprise tapping strong demand for Medical and Healthcare professionals, capitalizing on solid demand in the mortgage market and OnCourse Learning.

This company’s earnings for fiscal 2022 are expected to rise by 9.1%.

Stride, Inc. (LRN - Free Report) : A Zacks Rank #2 company has been gaining from higher enrollment and cost-saving efforts. Persistent demand for online learning options has been benefiting Stride’s top line in recent times. Investments focused on improving user experience, enhancing teacher tools and strengthening student engagement also bode well. In addition to higher enrollments and stronger-than-expected student retention, acquisitions are expected to drive growth.

The company’s earnings for fiscal 2022 are expected to surge by 48%.

Perdoceo Education Corporation (PRDO - Free Report) : This Zacks Rank #2 company has been benefiting from an improvement in enrollment trends at both of its segments — Colorado Technical University (CTU) and American InterContinental University (AIU). Apart from higher revenues, operating efficiencies at both CTU and AIU and the Trident acquisition bode well. The company’s focus on increased investments in technology and student-serving processes drives growth.

Although its earnings for 2022 are expected to decline 18.8%, the company surpassed analysts’ expectation in each of the last four quarters. PRDO has a trailing four-quarter earnings surprise of 13.1%, on average.

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