Money and Finance
Investing in dividend aristocrats has long led to solid and stable returns for investors. What's not to like about getting a raise that beats inflation year after year just for owning an excellent company. However, just because a company has grown its dividend like clockwork doesn't mean that the shares are currently offering value. It's been far too long since I did a full in-depth analysis of Emerson Electric (NYSE:EMR), and the 20% decline in EMR's share price brought it to my attention. Shares of Emerson Electric closed trading on Friday, October 23rd at $48.18, giving investors a current yield of 3.90%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Emerson Electric Co.'s investor relations page, Morningstar, and Yahoo Finance.
Historical Growth Rates:
Owners of Emerson Electric shares have earned sub-par returns over the last decade. According to longrundata.com, the shares have earned investors a total return of 86.0%, or 6.4% annualized, over the last decade. Those numbers are market returns at specific snapshots in time, and aren't necessarily indicative of the business results over the same time period. Looking at the historical growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that the company has delivered.
Continue reading the Emerson Electric Co. stock analysis on Seeking Alpha.
Also check out my Stock Analysis page to see more analyses.
Image sourced from Wikipedia.
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Money and Finance
Emerson Electric: Short-Term Headwinds Make For Attractive Long-Term Returns
Investing in dividend aristocrats has long led to solid and stable returns for investors. What's not to like about getting a raise that beats inflation year after year just for owning an excellent company. However, just because a company has grown its dividend like clockwork doesn't mean that the shares are currently offering value. It's been far too long since I did a full in-depth analysis of Emerson Electric (NYSE:EMR), and the 20% decline in EMR's share price brought it to my attention. Shares of Emerson Electric closed trading on Friday, October 23rd at $48.18, giving investors a current yield of 3.90%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Emerson Electric Co.'s investor relations page, Morningstar, and Yahoo Finance.
Historical Growth Rates:
Owners of Emerson Electric shares have earned sub-par returns over the last decade. According to longrundata.com, the shares have earned investors a total return of 86.0%, or 6.4% annualized, over the last decade. Those numbers are market returns at specific snapshots in time, and aren't necessarily indicative of the business results over the same time period. Looking at the historical growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that the company has delivered.
Continue reading the Emerson Electric Co. stock analysis on Seeking Alpha.
Also check out my Stock Analysis page to see more analyses.
Image sourced from Wikipedia.
- Go To Lowe's To Improve Your House But Not Your Portfolio... Yet
Peter Lynch told us to "buy what you know". Now I've never worked in a Lowe's before, or retail of any kind for that matter, but I much prefer Lowe's Companies, Inc. (LOW) to The Home Depot, Inc. (HD). At the Lowe's near my...
- You Can't Clean Up A Messy Valuation: The Clorox Company Dividend Stock Analysis
Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input...
- Colgate-palmolive Co.: Excellent Company But How's The Valuation?
When volatility in the markets increases that leads many investors to look for defensive investments that will hold up during a market downturn. Consumer staples are some of the best options when it comes to holding up in a declining market as well as...
- Is Procter & Gamble A Value Play?
Volatility has spiked over the last week with large swings in share prices both lower and higher. This could lead some to take up defensive positions for their portfolio. That means consumer staples and how many consumer staples can spout a 59 consecutive...
- Opportunity Knocks To Power Your Portfolio With Eaton Corp. Plc
The industrial sector has taken a beating so far in 2015 and Eaton Corporation (NYSE:ETN) hasn't escaped the damage with the share price declining 26% from its high reached in May of this year. Of course, Mr. Market is a bit irrational from time to...