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 ! Seul l'excellente Procter & Gamble parvient à faire mieux avec 57 années. Malgré ces augmentations successives, le taux de distribution reste très intéressant, avec 46.66%, ce qui laisse une bonne marge à EMR pour continuer à augmenter son dividende dans le futur, même en cas de passage difficile. Nous l'avons dit, Emerson est une force tranquille, cela se reflète également à travers une progression certes constante mais relativement modeste de ses distributions (6.99% par an). Le rendement est lui aussi assez discret, avec 2.85%, le titre étant actuellement un peu surévalué suite à une 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.