Retirement Dividend Stocks Spotlight: How Emerson Electric (EMR) Provides Consistent Payouts

Emerson Electric Co. (NYSE:EMR) is included among the 10 Best Dividend Stocks to Buy for Retirement.

Emerson Electric Co. (NYSE:EMR) is an American manufacturing company that offers products and services related to commercial, industrial, and consumer markets. The company has undergone a significant transformation in recent years, emerging as a more focused company with stronger long-term growth potential. The business is now centered around key areas such as process and industrial automation, industrial software, and related fields like automated test and measurement.

According to management, Emerson Electric Co. (NYSE:EMR) is positioned to achieve revenue growth of 4% to 7% across economic cycles. By shifting more toward software-defined automation, the company also expects to improve its profit margins. This strategy is aimed at delivering double-digit earnings growth and generating free cash flow margins between 15% and 18% over time.

In addition, Emerson Electric Co. (NYSE:EMR) is a solid dividend payer. The company holds one of the longest streaks in the market, spanning over 67 years, which makes it one of the best dividend stocks to consider for retirement. It currently pays a quarterly dividend of $0.5275 per share and has a dividend yield of 1.44%, as of July 30.

While we acknowledge the potential of EMR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.