EMR - Long Term Short Term This Dividend Aristocrat Is a Winner
Having raised its dividend for the last 60 years, Emerson Electric (NYSE: EMR) is an income-seeking investor's favorite. It's also a stock with excellent growth prospects and trading on favorable absolute and relative valuations. Here's why the stock deserves a look in the current environment.
With $18.2 billion in sales in 2021, Emerson Electric is a company combining automation solutions ($11.6 billion in 2021 sales) and commercial and residential solutions ($6.6 billion) businesses. The latter business combines heating, ventilation, and air conditioning (HVAC) solutions (climate technologies having had $4.7 billion in sales in 2021) and tools for professionals and homeowners (tools and home products having had $1.9 billion in sales in 2021).
The commercial and residential businesses are attractive for their exposure to the HVAC market. However, the automation solutions segment is the key to the investment case for the stock. Within automation solutions, Emerson offers measurement and analytical instrumentation (to help monitor the processing of raw materials in process automation), valves, actuators and regulators (controlling and regulating the flow of raw materials), and pneumatic mechanisms. In addition, Emerson Electric owns 55% of the industrial software company AspenTech .
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Long Term, Short Term, This Dividend Aristocrat Is a Winner