This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Big Stocks Ready to Pay You Bigger Dividends

Emerson Electric

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

First up is Emerson Electric (EMR), a $37 billion firm that owns a diverse portfolio of businesses, manufacturing electric motors, valves and switches, air conditioning compressors and tools. That positioning gives EMR hefty exposure to the cyclical industrial sector, a business that's been under pressure in the last few years as demand slows for manufactured goods.

Still, Emerson has made some big strides at recovering from the Great Recession. In 2011, the firm finally eclipsed its pre-recession revenue and profit levels.

>>2 Dividend Stocks to Sell for Profits

With a massive presence in factories around the world, Emerson has turned its focus to emerging markets to seek out growth going forward. As a burgeoning middle class drives up wages in countries with major manufacturing operations, the firm's expertise in process automation should help it to attract customers who want to keep human workers on tasks that machines can't do. Big investments in Emerson's power business in recent years should also help drive sales in the lucrative (and less cyclical) infrastructure projects taking place around the globe.

Emerson has a long track record of rewarding shareholders. Historically, the firm has paid out around 80% of free cash for dividends and share buybacks. The firm's 40-cent quarterly dividend payout gives EMR a yield of 3.2% right now, but this stock has all the markings of a firm set to hike its dividend later on in 2012.

Investors looking for industrial exposure in their portfolios should consider EMR a good core income holding right now.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs