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Emerson Electric Has Raised Its Dividend for 68 Years and the Streak Looks Secure

Emerson Electric (NYSE: EMR | EMR Price Prediction) has paid dividends for 68 consecutive years, but can the industrial automation giant maintain that streak? With a 1.54% yield and recent earnings volatility, income investors need to look beyond the surface.…

By William Temple

Published December 8, 2025, 8:47am ET · 2 min read

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Emerson Electric (EMR) earns a 'SAFE' rating in its dividend safety analysis, reflecting its strong financial health and commitment to shareholders. © 24/7 Wall St.

Emerson Electric (NYSE: EMR | EMR Price Prediction) has paid dividends for 68 consecutive years, but can the industrial automation giant maintain that streak? With a 1.54% yield and recent earnings volatility, income investors need to look beyond the surface. 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. This marks a dramatic improvement from 60.7% in fiscal 2020, when pandemic pressures squeezed profitability.

Operating cash flow of $3.10 billion covered the dividend 2.6 times over, providing substantial cushion even before accounting for capital expenditures of $431 million.

An infographic titled 'Emerson Electric (EMR): The 68-Year Dividend King - Can the Streak Continue?' on a dark background within a tablet frame. The analysis sections include: 'Can the Streak Continue?' with bullet points on 68 consecutive years of payment, 1.54% current yield, and recent earnings volatility. 'The Analysis: Beyond the Surface' displays three progress charts for FY2025 projections: Earnings Payout Ratio at 35.2% (Healthy), FCF Payout Ratio at 44.7% (Healthy), and Operating Cash Flow Coverage at 2.60x (Strong), each with descriptive text. 'The Anomaly: FY2023 Explained' features a line graph showing Free Cash Flow (FCF) Coverage (x) from FY2021 to FY2025. Coverage is 2.4x for FY2021 and FY2022, drops sharply to 0.23x in FY2023, then recovers to 2.43x in FY2024 and 2.24x in FY2025. A callout box explains the FY2023 dip was due to the Climate Technologies Spinoff in Oct 2023, noting an $11.1B accounting gain and disrupted cash flow, but dividend was maintained. The 'Management Commitment' section highlights CEO stock options and a +5.2% dividend increase in Nov 2025. The final section, 'The Verdict: Secure & Safe Dividend Safety Rating: SAFE' with a checkmark, lists reasons such as ample FCF cushion, weathered major restructuring, and institutional commitment, concluding it's ideal for reliable income despite a below-average yield. — This infographic details Emerson Electric’s (EMR) strong dividend safety, explaining its 68-year streak and the temporary dip in free cash flow coverage in FY2023 due to a strategic spinoff.

One Anomaly Worth Watching

Year	Free Cash Flow	Dividend Paid	FCF Coverage
FY2025	$2,667M	$1,192M	2.24x
FY2024	$2,913M	$1,201M	2.43x
FY2023	$274M	$1,198M	0.23x
FY2022	$2,391M	$1,223M	1.96x
FY2021	$2,994M	$1,210M	2.47x

Fiscal 2023 stands out. Operating cash flow collapsed to $637 million, and free cash flow dropped to $274 million. The dividend exceeded free cash flow by more than 4x that year. This stemmed from the tax-free spinoff of Emerson’s Climate Technologies business to Copeland in October 2023, which generated an $11.1 billion accounting gain but disrupted normal cash operations.

The company maintained its $1.2 billion dividend commitment during this transition year, demonstrating management’s resolve. Cash flow has since normalized, with fiscal 2024 and 2025 both generating over $2.6 billion in free cash flow and healthy 2.2x to 2.4x coverage ratios.

This Dividend Looks Secure

Dividend Safety Rating: Safe

The free cash flow payout ratio of 44.7% provides ample cushion, the balance sheet weathered a major restructuring without cutting the dividend, and management raised the payout by 5.2% in November. The 68-year streak speaks to institutional commitment beyond quarterly results.

Emerson works for income if you can accept modest 1-2% annual dividend growth and a below-average yield. However, the company’s 1.1% five-year dividend CAGR suggests a conservative approach to payout increases.

Contact [email protected] for any questions or corrections.

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William Temple

I write to invest, and I invest to spend more time with nature. Usually all at the same time. I'm a retired equities guy who saw a recession or four, and lives for what comes out of the other side of them.

I cover stocks across the board cause even though I feel like I've seen it all, there's always another way out there to make, and lose money. I want to help you do more of the former, and none of the latter. Making money with friends is my oxygen.

Let's go!

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