Emerson Electric (NYSE:EMR)

Emerson Electric Company Emerson Corp. is a multinational corporation founded in 1890 and headquartered in Ferguson, Missouri, United States. A Fortune 500 company, it provides a broad range of engineering services to industry and commerce. In 2010, Emerson had 127,700 employees in the 150 countries where the company operates. Like many of my favorite titles, 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 is diversified with more than 60 companies, with a largely international presence, particularly in emerging markets Asians. The company competes with General Electric Company (GE) in industrial equipment and healthcare supplies, and with Caterpillar (CAT) and ABB (ABB) in heavy equipment, mining and agriculture.

Emerson Electric has thus achieved the feat ofincrease its dividend for 55 consecutive years! Despite these successive increases, the distribution rate remains very interesting, with 48,85%, 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 through a certainly constant but relatively modest progression of its distributions (6,32% per year). The average yield as for him is good with 3.07%.

Emerson is slightly more volatile than my average portfolio, at 15.87%. The beta, with 1.20, indicates that EMR is sensitive to market variations. The title has shown 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 heavily dependent on foreign markets and dollar fluctuations. Just over 50% of all Emerson sales are made outside the United States. A fall of the value of the greenback and the relative rise of other currencies significantly stimulates EMR exports. $risk of -0.19 indicates that a fall in the dollar against the Swiss franc is usually accompanied by an increase in the value of the security in CHF.

Emerson has excellent qualities for a dividend payer. Aside from a bit of high volatility, Its only major flaw is the growth of distributions, which is currently proving to be a bit soporific.. For this reason, I prefer to keep a close eye on the title for the moment, with a view to perhaps buying it later, if the conditions are right.

Sources: Wikipedia, Wikinvest, Yahoo Finance, Swissquote, dividends.ch