Wednesday, August 5, 2015

Recent Buy - Emerson Electric Co. (EMR)

23th July 2015 I Bought 40 shares of Emerson Electric Co. at $ 51.48 per share plus commission.

Emerson Electric Co. provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The Process Management segment offers products and technology, and engineering, project management, and consulting services for precision measurement, control, monitoring, asset optimization, and safety and reliability of oil and gas reservoirs and plants. This segment serves end markets in oil and gas, refining, chemicals, power generation, pharmaceuticals, food and beverages, pulp and paper, metals and mining, and municipal water supplies. The Industrial Automation segment offers integrated manufacturing solutions for products, including motors, drives, power generating alternators, fluid controls, electrical distribution devices, and materials joining equipment.
The Network Power segment designs, manufactures, installs, and maintains products that offer electric power conditioning, power reliability, and environmental control for telecommunications networks, data centers, and other critical applications, as well as offers comprehensive data center infrastructure management solutions. The Climate Technologies segment provides products and services for various areas of the climate control industry, including residential heating and cooling, commercial air conditioning, and commercial and industrial refrigeration. The Commercial & Residential Solutions segment offers a range of professional and do-it-yourself tools; residential, commercial, healthcare, and food service storage solutions; and appliance solutions. The company was formerly known as The Emerson Electric Manufacturing Company and changed its name to Emerson Electric Co. in 2000. Emerson Electric Co. was founded in 1890 and is headquartered in St. Louis, Missouri.

EMR is a Dividend Champions with an 58 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 6.0, 7.0, 5.8 and 8.1. (Dividend Champions.xls) Emerson Electric Co. now pays dividends of $0.47 per share normally in March, June, September and December.


EMR's earnings per share has varied a lot and there was a big dip in 2009 and in 2012. Despite the fact EMR has been able to increase their dividend every year, due to a reasonable payout ratio.

According to A Frugal Family's Journey‘s Collection of RECENT BUYS (Summary) - July 2015 Emerson was the most popular purchase among DGI bloggers.

During this year, many bloggers have analyzed Emerson, here's a link to the most recent, by DividendDiplomats. 

Details of my purchase:

Some ratings for EMR:

    Yahoo:  Mean Recommendation 2.8, 1y Target Est $59.90
    Reuters: Mean Rating 2.77
    Zacks Rank: 4-Sell
    Morningstar:  (****)

At today's exchange rate, this purchase 40 shares of EMR will increase €51.10 ($56.02) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9590.00. With purchase price $51.48 plus commission ($5.00) my starting yield on cost is 3.64%.

Click here to see my portfolio.

Full Disclosure: Long EMR


  1. Nice dividend growth rates and a long history of increases for sure! Not a stock I look into currently, but still something solid!



  2. I have also been building up my position in EMR in the last weeks... and every week it gets cheaper.
    Very solid company that's for sure!

  3. Sure it fell sub $50 right after my purchase - oh well, definitely getting some more at around $45.

  4. Hi DH,

    Great purchase. EMR has been on my watchlist for a while, but never pulled the trigger.
    As it is trading at a very reasonable price, I might pull te trigger soon.

    Congrats on your purchase!
    Best wishes, DfS

  5. DH,

    Like the move. Also recently added to my EMR position for the first time in a few years. VERY long-term shareholder here. :)

    Keep it up!


  6. Lots people buy EMR lately it seems. Great buy for the long term.

  7. Great buy Hawk...Very popular buy among the DGI investing community. It is on our short list for this month as well.

    Also, thanks for the mention. :)

    Best wishes and continued success on your personal journey! AFFJ