Emerson Electric (NYSE:EMR)

Emerson Electric Company is a multinational corporation founded in 1890 and headquartered in Ferguson, Missouri, United States. A Fortune 500 company, it provides a wide range of engineering services to industry and commerce. In 2010, Emerson had 127,700 employees in the 150 countries where the company operates (Source Wikipedia). Like many of our top names, portfolio, Emerson is a quiet force, who knows how to generate cash on a regular basis while almost outrageously mocking the upheavals of the economy.

Emerson Electric has thus achieved the feat ofincrease its dividend for 54 consecutive years ! Only the excellent Procter & Gamble manages to do better with 57 years. Despite these successive increases, the distribution rate remains very interesting, with 46,66%, which leaves a good margin for EMR to continue to increase its dividend in the future, even in the event of a difficult passage. As we have said, Emerson is a quiet force, this is also reflected in a constant but relatively modest progression of its distributions (6,99% per year). The yield is also quite discreet, with 2,85%, the title being currently a little overvalued following a 80% price progression over the last two years.

Emerson is slightly more volatile than our average portfolio, at 15.33%. The title posted a steady progress for 30 years, even managing to show very interesting gains during the 'lost decade' 2000-2010The last bear market weighed heavily and unfairly on EMR, which subsequently recovered tremendously. The sleuths who bought it in 2009 thus made an excellent transaction.

Emerson is therefore currently slightly overvalued relative to its current and future distributions. However, it is a quality stock to hold in your portfolio or to watch if you do not already own one.