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Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does HNI (HNI) have what it takes?

HNI was previously rated a Sell, and I am upgrading it to a HOLD as the stock price has suffered significantly since my initial coverage. The acquisition of Steelcase increased Workplace Furnishing results dramatically, with segment revenue up about 50%, and 8.6% on an organic basis. I am monitoring management's ability to realize $100M+ in synergies related to the Steelcase acquisition.

HNI Corporation is rated Hold pending evidence that the Steelcase acquisition delivers promised synergies and margin expansion. Recent 38% sales growth is driven by Steelcase, but underlying organic growth remains modest at 9% year-over-year. Acquisition costs temporarily depressed margins; next quarter's results will better reflect Steelcase's full integration and operational impact.

SG Americas Securities LLC increased its holdings in shares of HNI Corporation (NYSE: HNI) by 167.4% during the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 42,621 shares of the business services provider's stock after buying an additional 26,683 shares

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does HNI (HNI) have what it takes?