Happy Halloween Everyone.
Since my last post with STAG was so well received, I decided to go through and do another analysis on a hidden stock I don't believe gets talked about much here, and is an honorable mention.
Today's Company: Emerson Electric. Ticker Symbol: EMR
Quick Summary of the Company: Manufacturing company that provides Engineering services for industrial, commercial, and consumer markets. They were well known at their founding for very unique markets such as dental drills, and sewing machines. They also manufactured airplane parts for WWII. Today they provide solutions for manufacturing companies, specifically for automation.
Stock price Currently: 97.01
Stock Price 10 years ago: fluctuating between 43-50, so easily a 100% increase in 10 years.
Dividend Currently: 2.02 (2.08%)
59 years of consecutive dividend growth. The past 10 years about a 50% increase in dividend. (0.34 every quarter to 0.505)
Debt to Equity Ratio: 0.78 (anything below a 1 is considered good)
Why you want it in your portfolio: Emerson Electric is a safe play. Just the bottom line. you don't see many companies that continue to have a decent balance sheet, and increase their dividend growth so long. Before Covid hit, Emerson had a very, very good sales growth of 8-10% per year. They are the hand-holders for the manufacturing space, as their aid and solutions continues to help thousands of individual companies. Furthermore, you are also buying a bit of a technology stock, as they do offer process automation, which relies on custom built in-house software that manufacturing companies buy. They work often with companies like Dow Chemical. Despite the supply chain woes of covid and manufacturing being affected, their diverse portfolio holds up well.
Why you might not want it in your portfolio: They are a very, very slow moving company. While their balance sheet is great and their dividend increase over the years is nothing to scoff at, it doesn't beat the S&P500, technically speaking. I like to view this company as a bond more, as their stock doesn't fluctuate too much, and goes up as needed. They have also felt the bulk of the Covid Pandemic, as manufacturing in the states has hit a standstill due to the supply chain shortages, which Emerson continues to support the most.
I personally see them a good buy right now, as the supp
... keep reading on reddit ➡For instance my favorite system is Allen Bradley line of PLCs, I have no problem reading function block or ladder logic but couldn’t set up a system from scratch. I’ve only had to add items like alarms and logic to open/ close valves simple stuff. I can troubleshoot but their is still a lot of knowledge I am missing. I know their are cheaper options but has anyone taken the courses offered by Allen Bradley? I may be able to get my company to pay for a course here and there. My title is controls engineer and I deal with instrumentation, actuators, motor controls, and electrical projects. PLCs are a good portion of my jobs but I don’t do any design from scratch work, but I would like to eventually. We bid projects out but there are some things I believe I could do to save the company some money once I develop some more skills, like my predecessor who retired. Right now I mostly develop project scope and trouble shoot random issues that might come up.
