Top 5 Dividend Kings of 2021 (Part II)

13. Emerson Electric Co. (NYSE: EMR)

Dividend Yield: 2.40%

Emerson Electric is a Fortune 500 company. It provides engineering services industrial, commercial and consumer markets. As of 2020, the company has increased its dividend consistently for 63 years. Latest media reports say that the company is considering selling its Appleton Group electrical products unit for about $1 billion.

Of the 816 hedge funds tracked by Insider Monkey, 36 held positions in EMR at the end of the third quarter.

Fiduciary Management said the following about EMR in their Q1 2020 Investor Letter:

“Emerson Electric offers a wide range of products and services primarily in the areas of Automation, HVAC & Refrigeration, and Construction. The company is comprised of Automation Solutions, Climate Technologies, and Tools & Home Products. Emerson has market-leading positions thanks to their domain knowledge, innovation (differentiated technology), and services & solutions capability to address complex challenges in critical markets. Automation Solutions enable customers to maximize production while reducing costs, and Climate Technologies improves energy efficiency, enhances comfort, and protects food quality. Although a cyclical company, nearly 40% of total sales come from the maintenance, repair and optimization portion of Automation Solutions (significant installed base). The replacement nature of Climate Technologies also helps this part of the business be less cyclical in a downturn. In addition to contingency plans in the current economic environment, the company’s balance sheet is positioned very conservatively (strong investment-grade credit) and they have plenty of liquidity. With a compelling valuation, we feel that Emerson is an attractive investment opportunity over our time horizon.”

Related Article: Is EMR A Good Stock To Buy According To Hedge Funds?