Lawn care titan Scotts Miracle-Gro (NYSE:SMG) 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 (NASDAQ:CENT)(NASDAQ:CENTA) does not pay a dividend at all. Spectrum Brands (NYSE:SPB) 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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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.