ETD - Leggett & Platt: Declining Cash Flows Make This Dividend King A Stock I Would Avoid

2024-03-07 07:30:00 ET

Summary

• Leggett & Platt's stock price has dropped significantly, making it appear attractive for investors seeking high yields.
• However, the company's financial performance has been underwhelming, with declining earnings and sales.
• The dividend payout ratio is projected to be above 100% in 2024, putting their Dividend King status at risk.
• The company is down double-digits over the past 1 & 5 years, underperforming peers in the sector.
• However, the economy is expected to boost consumer confidence with interest rates expected to decline which could impact the Dividend King positively.

Introduction

Seeking Alpha is full of experienced investors who are all pretty savvy when it comes to investing. But for just as many experienced investors, I'm sure there's plenty who are less experienced in search of stocks with attractive yields. Especially, when they're trading at a cheap price currently....

For further details see: