#3 - Emerson Electric (NYSE:EMR)
Emerson Electric Co. (NYSE: EMR) is a global leader in automation equipment and services. The company’s portfolio includes a wide range of categories that provide stable revenue. And, notably, the company is pivoting into high-margin areas such as sustainability, decarbonization, and energy transition.
EMR stock is up 6.6% in 2024, but it was up a lot more before the 11% drop after the company reported earnings in early August. However, any concerns about near-term growth should be placed in context with the company’s fundamentals.
Management expects to generate approximately $2.8 billion in free cash flow in 2024. And the company is projecting earnings growth in the high single digits in the next 12 months.
Even if that growth is delayed, you own shares of a dividend king that has increased its dividend for 67 consecutive years. It has a safe payout ratio of 11%, and the average annualized dividend growth in the last three years is just over 1%.
About Emerson Electric
Emerson Electric Co, a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity.
Read More - Current Price
- $111.44
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $124.59 (11.8% Upside)
