10 Biggest Dividend Cuts and Suspensions of 2024

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

Number of Hedge Fund Holders: 21

Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturing company that mainly specializes in products found in homes and automobiles. Before slashing its dividend this year, the company was a Dividend King with 52 consecutive years of dividend growth under its belt. Unfortunately, the company can no longer be considered a dividend grower following its decision to implement an 89% dividend cut earlier this year. This move wasn’t unexpected, as the company’s cash flow had been persistently volatile, putting pressure on its balance sheet. Free cash flow, which stood at over $602 million in 2020, declined to $497.2 million by 2023. As a result, the stock is down by over 63% since the start of 2024.

Leggett & Platt, Incorporated (NYSE:LEG) reported mixed earnings in the third quarter of 2024. The company’s revenue of $1.10 billion fell by 6.27% from the same period last year. The revenue also missed analysts’ estimates by $2.12 million. Despite this, the company managed to reduce its debt by $124 million, and its adjusted EBIT margin improved by 60 basis points sequentially during the quarter.

That said, Leggett & Platt, Incorporated (NYSE:LEG) is not completely out of the woods as management indicated that weak demand in residential end markets is likely to continue into the fourth quarter, driven by a challenging macroeconomic environment and reduced consumer spending. Furthermore, the Automotive segment remains under pressure due to challenges associated with the shift to electric vehicles, affordability concerns among consumers, and economic weakness in Europe. Consequently, the company has revised its sales and earnings per share (EPS) guidance downward.

Leggett & Platt, Incorporated (NYSE:LEG) currently pays a quarterly dividend of $0.05 per share and has a dividend yield of 2.06%, as recorded on December 22.

As per Insider Monkey’s database of Q3 2024, 21 hedge funds held stakes in Leggett & Platt, Incorporated (NYSE:LEG), the same as in the previous quarter. The overall value of these stakes is over $127.7 million. With over 2.1 million shares, D E Shaw was the company’s leading stakeholder in Q3.