On November 7th, Emerson Electric announced a dividend increase of 1%. This will increase their dividend from $0.48 to $0.485. This dividend is payable on December 11th for shareholders of record on November 17th.
Emerson Electric has an incredible streak of increasing their dividends. They have continuously paid and increased their dividend since 1957. A lot of people are not happy with such a small dividend increase but myself I am ok with it. I feel as though they made the small increase to allow for the acquisition of Rockwell Automation.
I love dividend increases as much as the next guy but what I love more is increasing shareholder value. If Emerson is able to acquire Rockwell it will insure that they will be able to increase their dividend for many years to come. So far Rockwell has turned down the deal twice but Emerson isn’t giving up that easy. I am ok with the smaller increase as long as they are creating value for us the shareholders.
A small dividend increase will not affect my income a whole lot since I don’t have a big position in the company. With this increase it will add an additional $0.05 to my quarterly dividend and will add $.20 to my projected annual dividend income. While this is a small increase if it allows them to acquire Rockwell, it will all be worth it.
Do you currently hold any stock in Emerson Electric? What do you think of this dividend increase? Just let me know in the comments.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
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