Updated on March 4th, 2025 by Felix Martinez
The Dividend Aristocrats consist of companies that have raised their dividends for at least 25 years in a row. Over the decades, many of these companies have become huge multinational corporations, but not all.
You can see the full list of all 69 Dividend Aristocrats here.
We created a full list of all Dividend Aristocrats and important financial metrics like price-to-earnings ratios and dividend yields. You can download your copy of the Dividend Aristocrats list by clicking on the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
Emerson Electric (EMR) has raised its dividend for 68 consecutive years, giving it one of the longest dividend growth streaks in the stock market.
This also qualifies the company as a Dividend King. Only four companies have longer dividend growth streaks than Emerson.
The company has achieved an exceptional dividend growth record thanks to its strong business model, decent resilience to downturns, and somewhat conservative payout ratio.
These factors provide a margin of safety during recessions. In this article, we’ll review Emerson’s prospects as an investment today.
Business Overview
Emerson Electric was founded in Missouri in 1890. Since then, it has evolved from a regional manufacturer of electric motors and fans into a technology and engineering company, providing solutions to industrial, commercial and individual customers.
It is a global leader with a presence in more than 150 countries. It offers industrial equipment and software to the oil and gas industry, refining, power generation, and other industries.
In the 2025 first quarter, Emerson reported strong Q1 2025 results, with net sales rising 1% to $4.175 billion and pretax earnings surging from $175 million to $775 million. Adjusted EBITA grew 15% to $1.169 billion, while GAAP EPS increased 252% to $1.02. Free cash flow jumped 89% to $694 million. The company also declared a $0.5275 per share dividend, payable March 10, 2025.
CEO Lal Karsanbhai credited the strong performance to Emerson’s industrial technology portfolio and execution strategy. He reaffirmed the company’s full-year outlook, expecting continued demand strength and recovery in discrete markets in the second half.
For fiscal 2025, Emerson projects 1.5%-3.5% net sales growth and adjusted EPS of $5.85-$6.05. Operating cash flow is forecasted at $3.6B-$3.7B, with $3.2B returned to shareholders through dividends and buybacks.
Source: Investor Presentation
Growth Prospects
Emerson has pursued growth by expanding its customer base and acquiring many companies. The company regularly acquires and divests parts of its business to create an optimal portfolio mix.
The Aspentech transaction was huge for Emerson, giving it access to Aspentech’s double-digit annual earnings growth. In addition, Emerson divested its Therm-O-Disc business and sold its Russian business following that country’s invasion of Ukraine.
Overall, Emerson has conducted many acquisitions and divestments to reshape its business.
Source: Investor Presentation
Emerson is undergoing a significant shift in its strategy. It is selling off legacy units and focusing more on automation and recurring revenue.
We are estimating growth of 9% as management remains bullish, there are signs of organic revenue growth improvement, and margins are improving.
Revenue growth in the mid-single digits and a tailwind from the buyback will be the key drivers of earnings-per-share growth in the coming years.
Competitive Advantages & Recession Performance
Emerson has served its customers for several decades, building great expertise in the markets it serves. In addition, thanks to its large scale and dominant global presence, it has a great reputation. This provides the company with a significant competitive advantage.
On the other hand, due to its reliance on industrial and commercial customers, Emerson is vulnerable to recessions and downturns in the energy sector. In the Great Recession, its earnings per share were as follows:
- 2007 earnings-per-share of $2.66
- 2008 earnings-per-share of $3.11 (17% increase)
- 2009 earnings-per-share of $2.27 (27% decline)
- 2010 earnings-per-share of $2.60 (15% increase)
- 2011 earnings-per-share of $3.24 (25% increase)
Emerson survived the Great Recession with just one year of decline in earnings per share, which is certainly impressive.
Given its sensitivity to economic cycles, it is impressive that Emerson has grown its dividend for 68 consecutive years. The exceptional dividend record can be attributed to the company’s decent resilience during downturns.
Another reason is the conservative payout ratio, which should be about 36% this year. This provides a material margin of safety for the dividend during economic downturns.
Valuation & Expected Returns
Based on expected adjusted EPS of $5.95 for fiscal 2025, Emerson is trading at 19.2 times its expected EPS. This earnings multiple is lower than our estimate of fair value, which is 20 times earnings.
This implies a 0.2% annual tailwind should it reach 20 times earnings over the next five years.
Therefore, we project total annual returns of 11% over the next five years, as 9% earnings growth, the starting yield of 1.8%, and the 0.2 PE expansion tail wind.
Final Thoughts
Emerson has an impressive dividend growth record, particularly given its heavy reliance on industrial and commercial customers, who struggle during recessions or downturn in the energy sector.
We see the stock as somewhat undervalued today. While the dividend growth streak is notable, the total return potential is decent at this point.
As a result, Emerson earns a buy rating due to projected returns.
Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:
- The Dividend Contenders List: 10-24 consecutive years of dividend increases.
- The Dividend Challengers List: 5-9 consecutive years of dividend increases.
- The Dividend Champions: Dividend stocks with 25+ years of dividend increases, including those that may not qualify as Dividend Aristocrats.
- The Dividend Achievers: dividend stocks with 10+ years of consecutive dividend increases.
- The Best DRIP Stocks: The top 15 Dividend Aristocrats with no-fee dividend reinvestment plans.
If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:
- The Complete List of Monthly Dividend Stocks: stocks that pay dividends each month, for 12 payments over the year.
- The Blue Chip Stocks List: this database contains stocks that qualify as either Dividend Achievers, Dividend Aristocrats, or Dividend Kings.
The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly: