1 Dividend King to Snag Before Summer

Emerson Electric (NYSE:EMR) is a St. Louis-based technology and engineering company. It provides solutions to industrial, commercial, and consumer markets around the world. Shares of Emerson have dropped 25% in 2020 as of close on May 22.

The economic costs of the COVID-19 lockdowns have reared their head in the month of May. Even still, markets are riding high. Investors should be cautious in this environment. Emerson offers stability and has delivered dividend-growth for over 50 consecutive years. That means it is officially a dividend king.

Emerson released its second-quarter 2020 results on April 21. Net sales fell 9% year-over-year to $4.2 billion while GAAP earnings per share were flat from the prior year at $0.84. On the plus side, Emerson delivered operating cash flow of $588 million – up 10% from Q2 2019.

Unsurprisingly, Emerson has made an adjustment to its full-year guidance due to the COVID-19 pandemic. The crisis has dramatically impacted the demand environment. It has also hindered energy market dynamics. Emerson now projects adjusted EPS between $3.00 and $3.20, compared to its earlier forecast that fell between $3.55 to $3.80.

Fortunately, Emerson announced in its Q2 report that there was no change to its dividend plan. On May 5, Emerson declared a quarterly cash dividend of $0.50 per share. This represents a solid 3.5% yield.

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Moreover, shares last possessed a favourable price-to-earnings ratio of 15. Like its peers, Emerson has taken a hit due to the COVID-19 pandemic. Still, this is an elite dividend stock for investors to scoop up right now.