Leggett & Platt (NYSE: LEG) is a diversified manufacturer (and member of the S&P 500) that conceives, designs, and produces a broad variety of engineered components and products that can be found in most homes, automobiles, and offices. The 134-year-old company (founded in 1883) is made of 17 business units, 21,000 employee-partners and 130 facilities located in 19 countries. Leggett & Platt is the leading U.S. producer of: a) bedding components; b) automotive seat support and lumbar systems; c) components for home furniture and work furniture; d) adjustable beds; e) carpet cushion; f) high-carbon drawn steel wire; and g) bedding industry machinery.
Investors tend to appreciate Leggett & Platt’s:
- Annual dividend increases – 44 consecutive years – at approximately 13% compound annual growth
- Significant market positions
- Strong cash flow and solid balance sheet
- Management's stock ownership and deferral of cash compensation
- Candor and "down to earth" culture