Since its founding almost a century ago in St. Louis, Missouri, Emerson Electric has become one of the world’s leading industrial automation companies. In that time, the company has developed and grown to become a global leader in the design and manufacture of high-tech products, technologies and services. Along with its impressive growth, Emerson Electric has also become a reliable source of income for shareholders, with a long-standing practice of rewarding them with regular dividend payments.
The company has a history of paying dividends that dates back to the early 1950s. Since then, Emerson Electric has consistently increased its dividend payments over the years, making it a great choice for investors looking for a steady stream of passive income. With that in mind, let’s take a closer look at the company’s dividend history to see how it has evolved over the years.
Emerson Electric's Dividend History
Emerson Electric began paying dividends in the early 1950s, with a quarterly dividend of $0.05 per share. Over the years, the company has been consistent in its dividend payments, increasing the dividend almost every year since it started paying out. The company's dividend payments have increased significantly since then, with the dividend currently standing at $0.44 per share, paid quarterly.
In addition to its steady growth, Emerson Electric has also been a reliable source of dividend income over the last few decades. The company has managed to maintain a consistent dividend payout ratio of approximately 40%, which is considered to be a safe level of payout. This means that the company has been able to keep up with the increasing demand for dividends, while still maintaining a healthy balance sheet.
In addition to its steady dividend payments, Emerson Electric has also been a consistent source of share repurchases over the last few years. The company has consistently bought back shares from its stockholders, which helps to increase the value of the shares for current shareholders. This helps to ensure that the company’s stock price remains attractive to potential investors.
A Look at Emerson Electric's Dividend Yield
The company's dividend yield is currently around 3.1%, which is relatively low compared to other dividend stocks. However, this is still a relatively attractive yield, especially when considering the company's long history of dividend payments and its reliable dividend payout ratio.
In addition to its attractive dividend yield, Emerson Electric also offers a number of other benefits to shareholders. The company has a strong record of capital appreciation, which means that shareholders have seen their investments increase in value over time. This is a great way to generate long-term wealth for shareholders.
Furthermore, the company's stock is also relatively liquid, which makes it easy for investors to buy and sell shares. This makes it easier for investors to diversify their portfolios and reduces the risk of investing in a single company.
Final Thoughts on Emerson Electric's Dividend History
Emerson Electric has a long and successful history of dividend payments and share repurchases. The company’s reliable dividend payout ratio and attractive dividend yield make it a great choice for income-oriented investors. Furthermore, the company’s strong capital appreciation and liquid stock make it a great long-term investment for those looking to build wealth.
If you’re looking for a reliable source of income and potential capital appreciation, Emerson Electric is definitely worth considering. With its impressive dividend history and strong financials, the company is well-positioned to continue to be a strong source of income and growth for shareholders in the years to come.