As you read this, chances are you’re sitting on a Leggett & Platt (NYSE: LEG) product. The Carthage, Mo., conglomerate makes many of the springs and supports used in furniture, carpets, cars, and various types of machines at its 140 plants in 18 countries.

Granted, this is not an exciting business. But it has proved amazingly resilient over the years. While LEG’s sales fluctuate with the economy, the company has done an excellent job of controlling costs, even as it acquired a wide variety of companies over the years.

Just as important for income investors, LEG’s management has demonstrated its mettle when it comes to increasing shareholder value. The dividend has risen every year since the early 1970s. LEG typically pays out 50 percent to 60 percent of its net earnings and often uses excess cash to buy back shares.

During the recent economic downturn, the company shrunk shares outstanding by close to a third, as it repurchased some 43 million shares. Return on equity has averaged 16 percent annually, thanks in part to these large share repurchases.

LEG’s dividend yield was recently an impressive 4.2 percent, despite the stock’s 29 percent gain over the past year. And with the resurgent strength of the underlying business, we think the stock will head even higher.

In the third quarter of 2012, LEG’s business started to pick up. Third-quarter earnings rose 45 percent year over year, on a 4 percent rise in sales, indicating the high profit leverage on each new sales dollar. Furniture segment sales were up 5 percent, aided by premium mattresses and adjustable bed frames.

For all of 2012, LEG is expected to earn $1.45 per share, up about 40 percent from 2011. And earnings growth is likely to average more than 15 percent annually through 2015, due to the following three catalysts.

Braving the Storm

Superstorm Sandy caused estimated damages of $50 billion, of which $8 billion to $10 billion was destroyed property, much of it furniture. That’s a lot of mattresses, couches and office furniture that will have to be replaced.

While a decent chunk of the replacement spending probably occurred late in the fourth quarter, such spending is likely to continue into 2013: It can take time for displaced persons to relocate and federal disaster assistance checks to be distributed. So LEG should still see strong Sandy-related growth through the first quarter of 2013.

LEG should also continue to benefit from rising US spending on cars. With US automobile sales up 13 percent last year, LEG’s full-year 2012 results will likely show that the company’s automotive group was one of its fastest growing segments.

As unemployment eased and home prices recovered, more Americans felt confident enough to buy new cars. And the upgrade cycle is not yet over. Despite that spending spree, US cars on the road remain relatively old: The average age is more than 10 years, well above the historical average of about eight years.

Finally, acquisitions will continue to be part of LEG’S strategy. The latest purchase was aircraft-component maker Western Pneumatic Tube, in September 2012.

Overall, LEG appears on track to keep capacity utilization rising and profit margins widening. Even though the shares steadily gained ground throughout 2012, LEG is likely to rise further in 2013 as housing-related spending and the automotive sector keep rebounding. In the meantime, the more than 4 percent dividend yield is a plentiful payout.