Emerson Electric (EMR) will be increasing its dividend from $.40 to $.41 per quarter which marks 56 consecutive years of rising payouts. Unfortunately this dividend boost is only 2.5% and pales in comparison to what they did last year. I like to see rising dividends, but I must admit I'm disappointed by this announcement. For a stock yielding around 3.5% I expect better dividend growth. I can get the same increase from high yielding stocks such as T or SNH.
Historically EMR has periods with low dividend growth so I'm not alarmed or even surprised. Before I become a shareholder I always check a company's dividend history. Over time I anticipate Emerson to average around 7% div increases. Pre-announcement, the 5 yr average was 9.1% and the 10 year average 6.4%. It seems Emerson is just being conservative this time.