4 Buy the Dip Dividend Aristocrats in the Industrials Sector

The industrial sector is benefiting from significant tailwinds derived from the continuing dominance of e-commerce and shifts in inventory models, according to Green Street analysts. The Green Street report also noted that…

‘risks impeding fundamentals appear low at first glance.’

Investors monitored the volatile trading environment yesterday, which was driven by the worsening Russia-Ukraine conflict. The Dow Jones Industrial Average slipped approximately 0.49% to close at 33,892.60. The S&P 500 closed down 0.24% at 4,373.94, while the Nasdaq gained late in the session to close at 13,751.40.

Given this backdrop, ‘Dividend Aristocrats’ in the industrial sector with more than 25 years of dividend growth, namely Emerson Electric Co. (EMR – Get Rating), Dover Corporation (DOV – Get Rating), Expeditors International of Washington, Inc. (EXPD – Get Rating), and A. O. Smith Corporation (AOS – Get Rating) might be solid bets on their share-price dip.

Emerson Electric Co. (EMR – Get Rating)

EMR in Ferguson, Mo., operates as a manufacturer and technology service provider for the industrial, customer, and commercial markets globally. The company operates through two segments–Automation Solutions, and Commercial and Residential Solutions.

On January 20, EMR announced that it had introduced a non-contacting radar device designed specifically for the food and beverage industry. This addition to its portfolio of measurement devices designed for hygienic applications requirements should add to its revenue stream.

On December 16, EMR announced that it had acquired a control automation business for wind power generation Mita-Teknik in an all-cash transaction. The acquisition is expected to complement the company’s portfolio of existing control systems and is expected to bolster its operative ability.

On February 2, EMR declared a quarterly dividend of $0.515 per share of common stock, payable to shareholders on March 10. Its annual dividend of $2.06 yields 2.22% at its current share price. The company’s dividend payouts have increased at a 1.5% CAGR over the past three years and 1.3% over the past five years.

For its fiscal first quarter, ended December 31, EMR’s net sales increased 7.5% year-over-year to $4.47 billion. Its adjusted EBITA rose 16% from the prior-year quarter to $878 million, while its adjusted EPS came in at $1.05, registering a 12.9% improvement from the same period the prior year.


The $5.02 consensus EPS estimate for its fiscal year 2022 indicates a 22.4% year-over-year increase. And the $19.58 billion consensus revenue estimate for the same year reflects a rise of 7.4% from the prior year. Also, EMR has an impressive surprise earnings history; it has topped consensus EPS estimates in each of the trailing four quarters.

The stock has gained 8.2% in price over the past year but declined marginally year-to-date to close yesterday’s trading session at $92.92. It is currently trading 12.3% lower than its 52-week high of $105.99

EMR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

EMR has a Stability, Sentiment, and Quality grade of B. In the 92-stock Industrial – Equipment industry, it is ranked #19. Click here to see the additional POWR Ratings for EMR (Growth, Value, and Momentum).

Dover Corporation (DOV – Get Rating)

DOV is an equipment and components, consumable supplies, aftermarket parts, and support services provider globally. The Downers Grove, Ill.-based concern operates through Engineered Products; Clean Energy & Fueling; Imaging and Identification; Pumps and Process Solutions; and Climate & Sustainability Technologies segments.

On February 22, Caldera, which is part of Dover Digital Printing and DOV, announced a strategic partnership with G-TEC Global for the delivery of eco-friendly PVC material solutions for brands and print service providers. The partnership should be beneficial for the company.

On February 3, Hillphoenix, which is part of Dover Food Retail and DOV, announced the addition of the…


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