5 Best Undervalued Dividend Kings to Buy in September

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In this article, we discuss 5 undervalued dividend stocks to buy in September. If you want to read our detailed analysis of dividend and value stocks, go directly to read 10 Best Undervalued Dividend Kings to Buy in September

5. Emerson Electric Co. (NYSE:EMR)

P/E Ratio: 15.43

Emerson Electric Co. (NYSE:EMR) is a Missouri-based manufacturing company that also provides engineering services for industrial, commercial, and consumer markets. Appreciating the company’s strong earnings in the recent quarter, Argus lifted its price target on the stock in August to $98 and maintained a Buy rating on the shares. The firm also highlighted the company’s strong balance sheet and one of the market’s longest dividend growth streaks.

Emerson Electric Co. (NYSE:EMR) has been raising its dividends consistently for the past 64 years. It pays a quarterly dividend of $0.515 per share and has a yield of $2.53%, as recorded on September 6.

In Q2 2022, Emerson Electric Co. (NYSE:EMR) reported an operating cash flow of $740 million, up from $442 million in the previous quarter. The company generated $630 million in free cash flow during the quarter, compared with $333 million in the preceding quarter. Its revenue for the quarter also grew by 7% year-over-year to $5 billion.

The number of hedge funds tracked by Insider Monkey owning stakes in Emerson Electric Co. (NYSE:EMR) stood at 47 in Q2 2022, growing from 45 in the previous quarter. The collective value of these stakes is over $1.2 billion. D E Shaw is one of the company’s most prominent stakeholders in Q2, owning stakes worth over $88 million.

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