Why NYSE:EMR qualifies as a good dividend investing stock.

Our stock screener has singled out EMERSON ELECTRIC CO (NYSE:EMR) as a promising choice for dividend investors. NYSE:EMR not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Unpacking NYSE:EMR's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:EMR has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.37, EMR pays a better dividend. On top of this EMR pays more dividend than 94.19% of the companies listed in the same industry.
• EMR has been paying a dividend for at least 10 years, so it has a reliable track record.
• EMR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 10.81% of the earnings are spent on dividend by EMR. This is a low number and sustainable payout ratio.
• EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Assessment of NYSE:EMR

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:EMR, the assigned 5 reflects its health status:

• An Altman-Z score of 3.15 indicates that EMR is not in any danger for bankruptcy at the moment.
• EMR has a better Altman-Z score (3.15) than 73.26% of its industry peers.
• EMR has a better Debt to FCF ratio (42.92) than 69.77% of its industry peers.
• EMR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.

Profitability Insights: NYSE:EMR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:EMR was assigned a score of 9 for profitability:

• The Return On Assets of EMR (23.71%) is better than 98.84% of its industry peers.
• EMR's Return On Equity of 53.35% is amongst the best of the industry. EMR outperforms 98.84% of its industry peers.
• EMR's Return On Invested Capital of 5.62% is fine compared to the rest of the industry. EMR outperforms 69.77% of its industry peers.
• The last Return On Invested Capital (5.62%) for EMR is well below the 3 year average (9.73%), which needs to be investigated, but indicates that EMR had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 69.33%, EMR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of EMR has grown nicely.
• With an excellent Operating Margin value of 17.42%, EMR belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.
• EMR's Operating Margin has improved in the last couple of years.
• EMR has a better Gross Margin (48.54%) than 95.35% of its industry peers.
• EMR's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of EMR contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.