Leggett & Platt: A Comfortable Dividend Play with Growth Potential
Sunday, Jan 26, 2025 9:46 am ET
6min read Leggett & Platt (LEG) has been a reliable dividend payer for many years, providing investors with a steady income stream. With a current yield of 1.87%, the company's dividend has evolved over the past decade, offering a consistent increase in the annual dividend per share and a stable yield. Let's delve into the company's dividend history, financial performance, and analyst ratings to assess its potential for future growth and profitability.
Leggett & Platt's dividend history shows a consistent increase in the annual dividend per share over the past decade. In 2010, the annual dividend was $0.63, and by 2023, it had grown to $1.82, representing a significant increase of approximately 188%. The dividend yield has remained relatively stable, hovering around 1.8% to 2.5%. The quarterly payout has also increased consistently, reflecting the company's commitment to returning value to shareholders.
Leggett & Platt's financial performance has been volatile over the past few years, with periods of significant growth followed by declines. However, the company's focus on innovation and leading-edge technology has contributed to its growth and profitability. In 2021, the company's revenue grew by 18.51%, and its EPS increased by 58.06%. Although the company experienced a decline in revenue and EPS in 2022, it is expected to rebound in 2023 and 2024, with projected EPS growth of 13.40% and 8.30%, respectively.
Analysts have a positive outlook for Leggett & Platt's stock, with an average target price of $12.67, predicting an increase of 18.52% from the current stock price of $10.69. The average analyst rating for LEG stock is "Hold," indicating that analysts believe this stock is likely to perform similarly to the overall market. However, the majority of analysts have maintained or upgraded their ratings, reflecting a positive sentiment.
Leggett & Platt's focus on innovation and leading-edge technology, combined with its consistent dividend history and positive analyst ratings, suggests that the company has the potential for future growth and profitability. While the company's financial performance has been volatile in recent years, its projected EPS growth and analyst ratings indicate a positive outlook for the future.
In conclusion, Leggett & Platt offers investors a comfortable dividend play with growth potential. The company's consistent dividend history, stable yield, and positive analyst ratings make it an attractive option for income-oriented investors seeking a balance between income and growth. As the company continues to focus on innovation and leading-edge technology, it is well-positioned to capitalize on future opportunities and deliver value to shareholders.
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