A new portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!
Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)
Today we'll review the second of five consumer cyclical sector stock candidates vying to be the sixth selection for the Vista portfolio.
My subject today is mid-cap furniture, fixtures, and appliances manufacturer, Leggett & Platt Inc. Its trading ticker symbol is LEG. This is my first report on Leggett & Platt Inc for this Vista dog of the week portfolio. In March I selected it for the Volio portfolio, however.
Leggett & Platt designs and produces engineered components and products found in homes, offices, retail stores, automobiles, and commercial aircraft.
It operates through four segments: residential products, furniture products, industrial products, and specialized products. Its products include components and machinery, steel infrastructure, furniture, and various other products. The company operates all around the world, with the residential products and specialized product segments contributing most heavily to the company’s revenue.
The company sells its products through sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is based in Carthage, Missouri.
I use three key data points to gauge dividend equities or funds like Leggett & Platt Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
LEG Price
Leggett's price per share closed at $44.70 yesterday. A year ago its price was $41.26. Price rose $3.44 or just about 8.3% last year (in line with its ten-year average).
If Leggett's stock trades in the range of $20 to $50 this next year, its recent $44.70 price might rise by $3.30 to reach $48.00 by October 13, 2021.
LEG Dividends
Leggett's most recently declared quarterly dividend was $0.40 payable October 15th (Thursday). Dividends are estimated to total $1.60 per share annually and yield 3.58% at yesterday's $44.70 closing price.
LEG Gains?
Adding the $1.60 annual anticipated dividend to my $3.30 optimistic estimate of Pfizer's price upside shows a $4.90 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put a little under $1,000.00 today in Leggett & Platt Inc at $44.70, we would buy 22 shares of LEG stock.
A $10 broker fee paid half at purchase and half at sale would cost us about $0.32 per share.
Subtract that $0.32 brokerage cost from my estimated $4.90 gross gain per share results in a net gain of $4.58 X 22 shares = $100.76 for a nearly 10.1% net gain on a $983.40 investment.
So it goes that Leggett & Platt Inc shows a possible near 10.1% net gain including a 3.98% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Leggett & Platt Inc. Only time and money invested in this stock will determine its worth.
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