Leggett & Platt, Incorporated ( LEG Quick Quote 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. Image Source: Zacks Investment Research
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
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