Leggett & Platt, Automatic Data Processing & Harsco Increase Dividend

Today, Leggett & Platt (LEG), Automatic Data Processing (ADP) and Harsco (HSC) announced dividend increases.

Leggett & Platt

The company announced it would be increasing its quarterly dividend nearly 39%. The new quarterly dividend equals 25 cents per share versus 18 cents per share in the same quarter last year. The estimated payout ratio equals approximately 70% based on estimated 2008 earnings of $1.42 versus the 5-year average payout of 52%. It should be noted in the company's news release today, LEG indicated they would be selling about 1/5th of their portfolio of companies. The release stated:

"The company is adopting a new strategic objective, implementing role-based portfolio management and more rigorous strategic planning, and narrowing its focus by eliminating over one-fifth of its portfolio. Leggett also intends to enhance returns on its remaining assets, return more cash to shareholders, and pursue disciplined growth."

Automatic Data Processing

The company announced it would be increasing its quarterly dividend by 26%. The new quarterly dividend equals 29 cents per share versus 23 cents per share in the same quarter last year. The estimated payout ratio equals approximately 53% based on estimated June 2008 earnings of $2.17 versus the 5-year average payout of 44%.

Harsco Corp

Harsco announced it would be increasing its quarterly dividend by 9.9%. The new quarterly dividend equals 19.5 cents per share versus 17.75 cents per share in the same quarter last year. The estimated payout ratio equals approximately 23% based on estimated 2008 earnings of $3.38 versus the 5-year average payout of 39%. It should be noted that Harsco's dividend remained unchanged from the 1st quarter of 1989 through the 4th quarter of 1991. Also, the dividend remained unchanged from the 1st quarter of 1993 through the 4th quarter of 1994.

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