Thursday, April 22, 2010

53 Years of Shareholder Loyalty

Emerson Electric Co. (EMR)
Here’s a company that has increased its dividend for 53 consecutive years. With $2.07 in free cash flow, we expect this trend to continue. Company reports on 5/4, $.54e versus $.53. This will be the first quarter of positive year over year gains. While this company is geared more towards later cycle investments, they are thriving in a very difficult environment:
1. Strong balance sheet.
2. Excellent cost controls .
3. Positive momentum in the auto sector and climate business.

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