Emerson Electric Co. (EMR) was established in 1890 in St. Louis, Missouri; its primary products include motors, drives, actuators, valves, switches, test equipment, air conditioning compressors, electric tools, and home storage solutions, explains Vita Nelson, dividend reinvestment expert and editor of DirectInvesting.

Emerson’s best-known brands include RIGID tools, ClosetMaid organizers, and InSinkErator garbage disposals.

Its long history of consistent earnings growth and dividend payments makes it a solid company. It is considered a solid and well-diversified business with a wide economic moat and sustainable competitive advantage over its rivals that also enjoys a solid corporate culture.

The stock exhibits a healthy Dividend Payout Ratio (DPR) of 59.0%, which means the company is paying out 59.0% of all its net income in dividends and is retaining a large percentage of earnings to reinvest or grow the business.

According to Morningstar, the stock is trading 15% below its Fair Value Estimate, making it attractive for investors with a long-term investment horizon.

According to Yahoo! Finance, consensus estimates call for the company to earn about $3.35 per share this year, up from $2.64 per share last year, and to go to about $3.74 per share next year.

Emerson Electrichas paid dividends to investors since 1947 and has increased its payments for 61 consecutive years, which makes it a dividend aristocrat. During the past five years, it has increased its dividends at an average rate of 3.5%, and its quarterly payment of $0.49 per share currently provides a yield of 2.86%.

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