Leggett & Platt Enhances Shareholder Value, Hikes Dividend
Leggett & Platt, Incorporated LEG announced a 3.2% increase in its quarterly dividend to 32 cents per share ($1.28 per share annually), payable on Oct 15, 2015 to shareholders as of Sep 15, 2015. The company has consistently hiked dividend for 44 straight years at a compounded annual growth rate of 13%.
The annualized dividend yield, based on the increased dividend and the last closing stock price, is approximately 2.7%. Previously, on Aug 5, 2014, Leggett & Platt had raised its quarterly dividend by 3.3%.
Apart from dividends, Leggett & Platt has a sound share repurchase program in place. For the first six months of the year, the company had repurchased 2.8 million shares of which 1.2 million were bought back in the second quarter of 2015.
Further, Leggett & Platt expects to continue with its share repurchase program, having a standing authorization to buy back up to 10 million shares every year, after fulfilling all priority requirements. During 2015, Leggett & Platt intends to buy back 3–5 million shares, apart from issuing 2.5 million shares through option exercises and employee benefit schemes.
On a three-year basis, from Jan 1, 2013, the company’s annual Total Shareholder Return (“TSR”) so far is 31% per year, which places it among the top S&P 500 companies.
Going forward, the company intends to stay focused on its main goal of achieving a three-year rolling TSR which will position it among the top-third of all S&P 500 companies. In order to achieve this goal, Leggett & Platt remains committed to its balanced strategy which includes increasing revenues, generating significant dividend yield, enhancing margins and reducing the outstanding share count.
Leggett & Platt currently carries a Zacks Rank #3 (Hold). Some better-ranked retail stocks are Virco Mfg. Corporation VIRC, American Eagle Outfitters, Inc. AEO and Boot Barn Holdings, Inc. BOOT. All these stocks sport Zacks Rank #1 (Strong Buy).
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