Daily Stock Analysis: Leggett & Platt
Today we look at mid-cap furniture, fixtures, and appliances company named Leggett & Platt Inc. Its trading ticker symbol is LEG. This is my third report on Leggett & Platt Inc for this portfolio. I reviewed it on October 13th and December 23rd last year.
Leggett & Platt designs and produces engineered components and products found in homes, offices, retail stores, automobiles, and commercial aircraft.
It operates through three segments: Bedding Products; Furniture, Flooring & Textile Products; and Specialized Products
The company operates all around the world, with bedding products and specialized product segments contributing heavily to the company’s revenue.
Specifically, the company offers innerspring, wire forms, specialty foams, and machines to shape wire into various types of innersprings; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions, and hard surface flooring underlayment, and geo components to manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; flooring retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components.
The company sells its products through sales representatives and distributors.
Leggett & Platt, Incorporated was founded in 1883 and is based in Carthage, Missouri.
Three key data points gauge dividend equities or funds like Leggett & Platt, Incorporated:
(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 & Platt's price per share closed at $42.17 yesterday. A year ago its price was $45.06. Price per share fell $2.89 or about 6.4% this past year.
If Leggett & Platt's stock trades in the range of $24 to $48 this next year, its recent $42.17 price might rise by $3.83 to reach $46.00 by February 17, 2022. That's a little below the analyst expectation for 2022.
LEG Dividends
Leggett & Platt Inc's most recently declared quarterly dividend was $0.40 payable April 15th. Dividends are estimated to total $1.40 per share annually and yield 3.79% at yesterday's $42.17 closing price.
Over the next year at this time, a $1000 investment would generate $37.90 in cash per share. And a single share bought at yesterday's closing price was over $42.00! So, if LEG is your kind of company, with hands in dozens of markets, wait for the price to drop to where the dividend income from $1,000 invested exceeds the single share price. You then have a block of stocks to hold forever, no matter where their price rises or falls.
LEG Returns
Adding the $1.40 annual LEG anticipated dividend to my $3.83 price upside shows a $6.23 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little over $1,000.00 today in Leggett & Platt Inc at $42.17 per share and we'd buy 24 shares of LEG stock.
A $10 broker fee (if charged) paid half at purchase and half at sale might cost us about $0.42 per share.
Subtract that maybe $0.42 brokerage cost from my estimated $6.23 gross gain per share results in a net gain of $5.81 X 24 shares = $139.33 for a 12.9% net gain on a $1,012.08 investment.
Leggett & Platt Inc shows a possible 12.9% net gain including a 3.79% dividend yield. It could be more, it could be less. And wait to buy until the annual yield from $1000 infested is equal to or greater than the single share price.
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.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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