Tuesday, November 6, 2012

Emerson Electric Increases Dividend

Emerson Electric released their earnings for the 3rd quarter 2012 that beat analyst estimates by $0.06.  They also announced a increase in their quarterly dividend from $0.40 to $0.41.  Unfortunately the $0.01 increase in the dividend is only a 2.50% increase.  The new dividend will be payable on December 10th to shareholders of record as of November 16th.



This is a little disappointing but not overly concerning as of now since I think management is just being conservative with a slowing economy, election and the upcoming "Fiscal Cliff".  Plus if you look at the dividend history of Emerson they typically have a few years of lower increases followed by a few years of elevated increases all averaging out to 10 year growth rate of 7.50%.

The new dividend increased my YOC for the Emerson position from 3.56% to 3.65% and will provide an extra $1.44 in annual dividends.

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