Leggett & Platt: A Fair Company At A Wonderful Price
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Leggett & Platt, once a Dividend King, cut its dividend by 89% to manage financial headwinds. The company plans to use the saved capital to reduce debt, aiming for a leverage target of 2.0x. By the end of 2024, LEG expects to cover its dividend with free cash flow.
November 07, 2024 | 12:30 pm
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Leggett & Platt has significantly reduced its dividend by 89% to address financial challenges and plans to use the capital to reduce debt. The company aims to achieve a leverage target of 2.0x and expects to cover the dividend with free cash flow by the end of 2024.
The dividend cut is a significant move for Leggett & Platt, indicating a strategic shift to prioritize debt reduction. While this may initially concern dividend-focused investors, the long-term plan to cover dividends with free cash flow by 2024 could stabilize investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100