Another dividend
machine for 2014.
I
have owned this stock for a while and now I think it should be a 2014 Dividend
Machine. Leggett & Platt makes all
kinds of things for homes, offices, airplanes … they’re everywhere. As you know I do not use current trends like
housing starts to determine which stocks to buy. I use my four Dividend Machine criteria and
by golly LEG qualifies.
I
noticed it today as I was looking through my portfolio for covered calls. I found a nice call on LEG and I checked the Dividend Machine Fundamentals of LEG to make
sure I still wanted to own it. LEG's Dividend Machine
Fundamentals are presented below.
Leggett & Platt
(LEG) Dividend Machine Fundamentals
Today,
as I write, LEG is trading about $32.50 which is the price I will use for my
analysis. Over the past 8 quarters, LEG
consistently earned more than it paid out in dividends. EPS = $1.34 and Dividends = $1.20. LEG’s dividend yield is 3.68%.
Dividend
increases are very important to income investors and LEG makes the grade with
an average dividend increase of 4% over the past five years. LEG has been solidly managed and sports a
debt to equity (D/E) ratio of .625.
See
the table below for a summary of LEG’s Dividend Machine Fundamentals.
Covered Call on LEG
The
table below summarizes the income potential for investors who buy LEG at $32.50
and sell a June $35 call. This kind of
additional income is why I own LEG as one of my Dividend Machines.
Consider
LEG for the income producing portion of your investment portfolio.
TheMoneyMadam
