Today’s dividend: Leggett & Platt

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

Sometimes, even though the monotony may drive you mildly insane, you gotta give some love to the boring companies. You know, people way, way, way, way smarter than I am say boring investing is the best investing.

The above quote comes from the mouth of none other than George Soros. You’ve heard of him, right? He’s the co-founder and manager of the Quantum Endowment Fund, an international hedge fund with more than $27 billion in assets under management.

That’s some serious change. It’s certainly enough to convince me that he knows a thing or two about investing. That said, there must be something to that quote about boring investing.

Do you have any boring companies in your portfolio? I know I have one or two. Today’s dividend, for example, came from a company I struggle to read about without dozing off. It specializes in, are you ready for this … engineered components for seats in airplanes and cars. It also makes and distributes furniture for homes and offices.

Leggett & Platt

Leggett & Platt (LEG) is a lot of things … including boring. The business itself, at least to me, is far from exciting and cutting edge. The financials aren’t all that interesting, either. LEG doesn’t move the meter. Then again, I didn’t buy it to move the meter. I added it to my Dividend Farm for stability and, well, that’s exactly what it’s provided.

I bought my one and only share in December of 2016 for $49.79 and it’s done pretty much nothing. It’s gone up as high as $54.97 and down as low as $43.16, but, as of this post, is sitting pretty much right where it was when I bought it.

The dividend hasn’t done a ton, either … but it has gone up. The first time I earned a quarterly payment, it was for $0.34. The last three, including today’s, have been for $0.36. Nothing special, but, based on Leggett & Platt’s track record, that number will inch a little higher soon enough.

The divided, which is currently sitting at an annualized rate of $1.44, represents a 2.96% yield at current prices. It’s well covered (LEG has a payout ratio of 58.30%) and it’s been growing forever. The company’s raised its dividend every year since 1972. The boosts haven’t been big, but I’ll take the 5% raise it’s averaged over the last three years.

Yeah, LEG isn’t all that exciting, but I’d argue everyone needs a company like it in their portfolio. It may be boring to read about and research, but the good news is you only have to do it once. I say that because you can be fairly confident the numbers you saw when doing the research won’t be all that different a year from now. Honestly, they probably won’t be all that different two, three or four years from now … and that’s not necessarily a terrible thing as long as it’s not the only company in your portfolio.

Any of you own Leggett and Platt? What about some other company most people would throw into the boring bin?

Here are links to my last couples posts, you know, in case you missed them …

Most recent dividend update

Most recent portfolio update

March on!

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