This High-Yield Dividend Is Still Safe Despite the Coronavirus
Speaking on the company' second-quarter earnings call, Emerson Electric Company (NYSE: EMR) CEO David Farr left investors in no doubt as to the depth of his commitment to maintaining Emerson's status as a Dividend Aristocrat. The company has increased its dividend for the last 63 years, and despite some very difficult end markets, Emerson's near 4% dividend yield looks secure. Let's take a look at why the stock is a decent option for income seeking investors.
In a departure from the usual refrain in the current earnings season, Farr decided to give earnings guidance, and what he said should have reassured investors. He also outlined the commendable efforts made by Emerson in teaming up with its process automation rival Honeywell International in order to facilitate the production of N95 face masks.
The key points to Emerson's guidance are shown below. Even though the current economic slowdown has caused a significant downgrade to sales and earnings expectations, the dividend remains well covered by earnings and free cash flow.
Source Fool.com
