I Just Bought This High Yield Dividend King and Things Have Gotten Worse
Leggett Platt (NYSE: LEG) is a cyclical business, which is probably one of the most important things investors must understand before buying it. Basically, the time to buy this Dividend King has historically been when things look most bleak. I knew that going in, so I'm not too surprised that the stock has continued to languish since I bought it. Here's why I may actually end up buying more.
When I buy a stock, my hope is that I'll never sell it. That doesn't always work out as planned, but I'm willing to hold on through a full business cycle as long as I feel comfortable with what is going on at the company. For example, I sold most of my 3M (NYSE: MMM) stake because I couldn't track the company's many legal headwinds surrounding forever chemicals and earplugs, not because its business had hit a weak patch. The proceeds from that sale helped fund the purchase of Leggett Platt, another industrial stock that had achieved Dividend King status.
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Source Fool.com
