Leggett & Platt: A Fair Company At A Wonderful Price

(11min)

Summary

  • Leggett & Platt, a former Dividend King, was forced to cut their dividend by 89% earlier this year due to headwinds.
  • The company now expects to use freed-up capital to pay down debt and deleverage towards their long-term target of 2.0x.
  • With the dividend reset, LEG is expected to cover the dividend with free cash flow by the end of 2024.
  • Household and credit card debt has continued to rise, emphasizing that the economy is not as strong as it appears to be.
  • Leggett & Platt's free cash flow is expected to grow to $321.50 million by the end of 2026.
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Introduction

If you've been following Leggett & Platt (NYSE:LEG) over the past year, then you're likely familiar with the company's woes over that time. And if you're a riskier investor, then you might be considering buying the stock now that it

This article was written by

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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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