Emerson Electric Has Raised Its Dividend for 68 Years and the Streak Looks Secure

1 month ago 14

William Temple

Mon, December 8, 2025 astatine 8:47 AM CST 3 min read

A dark, digital-themed graphic with a circuit committee  and robotic limb  successful  the inheritance  displays a 'Dividend Safety Analysis: Emerson Electric (EMR)'. A ample  greenish  shield with a checkmark signifies 'SAFE'. Below, cardinal  metrics are presented: '68-Year Dividend Streak', '44.7% FCF Payout Ratio (FY2025)', '5.2% Dividend Increase (NOV 2025)', and 'Operating Cash Flow Coverage: 2.60x (STRONG)'. The 24/7 Wall St. logo is successful  the apical  near  corner.

24/7 Wall St.

Emerson Electric (NYSE: EMR) has paid dividends for 68 consecutive years, but tin the concern automation elephantine support that streak? With a 1.54% output and caller net volatility, income investors request to look beyond the surface. I analyzed payout ratios, currency travel coverage, and the equilibrium expanse to find whether this dividend is genuinely safe.

Metric

Value

Annual Dividend

$2.11 per share

Dividend Yield

1.54%

Consecutive Years of Increases

68 years

Most Recent Increase

5.2% (November 2025)

Dividend Aristocrat Status

Yes (25+ years)

Emerson raised its quarterly dividend to $0.555 per stock successful November 2025, marking a 5.2% summation and extending 1 of the longest dividend streaks successful American industry.

Metric

FY2025 Value

Assessment

Earnings Payout Ratio

35.2%

Healthy

FCF Payout Ratio

44.7%

Healthy

Operating Cash Flow Coverage

2.60x

Strong

Emerson paid $1.19 cardinal successful dividends against $2.67 cardinal successful escaped currency travel during fiscal 2025, producing a FCF payout ratio of 44.7%. That leaves $1.48 cardinal successful retained currency for indebtedness reduction, acquisitions, oregon the $1.24 cardinal successful stock buybacks the institution executed.

The net payout ratio stands astatine 35.2% based connected fiscal 2025 EPS of $6.00. This marks a melodramatic betterment from 60.7% successful fiscal 2020, erstwhile pandemic pressures squeezed profitability.

Operating currency travel of $3.10 cardinal covered the dividend 2.6 times over, providing important cushion adjacent earlier accounting for superior expenditures of $431 million.

This infographic details Emerson Electric's (EMR) beardown dividend safety, explaining its 68-year streak and the impermanent dip successful escaped currency travel sum successful FY2023 owed to a strategical spinoff.

Year

Free Cash Flow

Dividend Paid

FCF Coverage

FY2025

$2,667M

$1,192M

2.24x

FY2024

$2,913M

$1,201M

2.43x

FY2023

$274M

$1,198M

0.23x

FY2022

$2,391M

$1,223M

1.96x

FY2021

$2,994M

$1,210M

2.47x

Fiscal 2023 stands out. Operating currency travel collapsed to $637 million, and escaped currency travel dropped to $274 million. The dividend exceeded escaped currency travel by much than 4x that year. This stemmed from the tax-free spinoff of Emerson's Climate Technologies concern to Copeland successful October 2023, which generated an $11.1 cardinal accounting summation but disrupted mean currency operations.

The institution maintained its $1.2 cardinal dividend committedness during this modulation year, demonstrating management's resolve. Cash travel has since normalized, with fiscal 2024 and 2025 some generating implicit $2.6 cardinal successful escaped currency travel and steadfast 2.2x to 2.4x sum ratios.


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