Dividend Increase – Emerson Electric (EMR)
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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I’ll gladly take that increase in EMR dividend. Not large but an increase nonetheless. Just goes to show the power of this solid dividend income machine. No plans to buy for me at current levels but it is a long term hold for me.
DivHut recently posted…Dividend Income Update October 2017
I totally agree DivHut. I would need to see the price go down drastically before I decided to add some more. If they are able to acquire Rockwell I don’t think the price will be going down anytime soon.
Even though it’s a small amount, an increase is an increase, and you’re right, creating value for shareholders is also just as important as the size of any increase in dividends. EMR is actually one of those stocks that will likely be focus of my next purchase for more reasons than one.
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I am very interested to learn about all of your reasons for looking at EMR. Thanks for stopping by DP.