Key Highlights
- I analyzed payout ratios, cash flow coverage, and the balance sheet to determine whether this dividend is truly safe.
- The Dividend at a Glance Metric Value Annual Dividend $2.11 per share Dividend Yield 1.54% Consecutive Years of Increases 68 years Most Recent Increase 5.2% (November 2025) Dividend Aristocrat Status Yes (25+ years) Emerson raised its quarterly dividend to $0.555 per share in November 2025, marking a 5.2% increase and extending one of the longest dividend streaks in American industry.
- Comfortable Payout Ratios With Room to Spare Metric FY2025 Value Assessment Earnings Payout Ratio 35.2% Healthy FCF Payout Ratio 44.7% Healthy Operating Cash Flow Coverage 2.60x Strong Emerson paid $1.19 billion in dividends against $2.67 billion in free cash flow during fiscal 2025, producing a FCF payout ratio of 44.7%.
- That leaves $1.48 billion in retained cash for debt reduction, acquisitions, or the $1.24 billion in share buybacks the company executed.
- The earnings payout ratio stands at 35.2% based on fiscal 2025 EPS of $6.00.
