10 Best Beaten Down Dividend Stocks to Invest in Now

2. Leggett & Platt, Incorporated (NYSE:LEG)

3-year high-to-low share price decrease as of August 30: 73.2%

Leggett & Platt, Incorporated (NYSE:LEG) is another best dividend stock that is added to our list. The American diversified manufacturing company was significantly impacted by a decline in consumer spending this year. As a result, the company announced an 89% reduction in its dividend this April, ending a 52-year streak of increasing payouts. This decision wasn’t made abruptly; the company’s cash flow had been consistently unstable, impacting its balance sheet. Free cash flow, which was over $602 million in 2020, dropped to $497.2 million by 2023. The stock is down by over 51.6% since the start of the year.

Leggett & Platt, Incorporated (NYSE:LEG) also reported an 8% decline in its revenue at $1.1 billion in Q2 2024. Despite this, the company has shown confidence in its future plans. The restructuring plan is proceeding as expected, with certain aspects advancing ahead of schedule and surpassing expectations. The company reduced its debt by $73 million, and the adjusted EBIT margin improved by 50 basis points sequentially this quarter. It remains dedicated to investing in its core businesses to foster profitable growth as market conditions improve.

On August 7, Leggett & Platt, Incorporated (NYSE:LEG) declared a quarterly dividend of $0.05 per share, which was in line with its previous dividend. The stock supports a dividend yield of 1.57%, as of August 30.

As per Insider Monkey’s database of Q2 2024, 21 hedge funds owned stakes in Leggett & Platt, Incorporated (NYSE:LEG), up from 19 in the preceding quarter. These stakes have a total value of nearly $92 million. Among these hedge funds, D E Shaw was the company’s largest stakeholder in Q2.