2.5 Reasons to Hold On to This Lawn Care Titan's Stock
Lawn care titan Scotts Miracle-Gro is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta points out the 2.5 reasons why he's continuing to hold the company's stock.
- Scotts Miracle-Gro's balance sheet looks reasonable.
- Its dividend is covered and likely has room to continue growing.
- Its valuation looks reasonable if it delivers a successful summer season.
Scotts Miracle-Gro's pattern of dividend growth sets it apart from its competition. Central Garden and Pet does not pay a dividend at all. Spectrum Brands only recently started increasing its dividend, and with a 64% payout ratio, that dividend is not as well-covered as Scotts Miracle-Gro's.
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The article 2.5 Reasons to Hold On to This Lawn Care Titan's Stock originally appeared on Fool.com.Chuck Saletta owns shares of Scotts Miracle-Gro. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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