Emerson Electric (NYSE:EMR) is a St. Louis-based multi-industrial conglomerate that operates under two business platforms; Automation Solutions and Commercial and Residential Solutions.
Shares of Emerson have climbed 12.6% in 2019 as of early afternoon trading on March 27. The stock is still down 3.2% from the prior year.
Emerson can certainly be considered dividend royalty as it has achieved over 60 years of dividend growth. The rate of its dividend-growth has slowed after management made a strategic shift in the middle of the decade. The company released its first-quarter results for fiscal 2019 on February 5.
Net sales increased 9% from Q1 2018 to $4.1 billion. GAAP earnings per share rose 21% year-over-year to $0.74. Back in November Emerson gave an underlying sales guidance of 4% to 7%.
It came in at 4.5% growth in Q1 2019, which is encouraging going forward. For the full-year Emerson projects net sales growth in the 7% to 10% range, and GAAP EPS between $3.60 and $3.75.
Back in November, Emerson increased its quarterly cash dividend to $0.49 per share. This represents a solid 2.9% yield. The company has now achieved 62 consecutive years of dividend growth.
Emerson stock is trading in the middle of its 52-week range. The stock last had an RSI of 48, which puts it in neutral territory as we kick off the spring season.
Emerson has one of the more attractive yields among the U.S.-listed dividend kings, and the stock comes at a decent price in a market plagued by overvaluation.
