Industrial stocks Eaton and Emerson Electric have positioned themselves for long-term growth, making them attractive options for investors looking for dividend stocks. Despite their current high valuations, a potential market pullback could present a buying opportunity for these two companies.
Eaton, with a long history in managing power, has transitioned to focus on the growing demand for electricity management in green industries like electric vehicles and renewable energy. The company’s backlog of work has significantly increased, showing the strong demand in this area. While the current dividend yield is low at 1.1%, a stock sell-off could bring it back to a more attractive level for dividend investors.
Emerson Electric, on the other hand, has shifted its focus to automation, helping customers manage their business processes more efficiently with the advancement of technology. The company has a solid backlog of work lined up for the future, but like Eaton, the current dividend yield is low at 1.9%. A yield in the 3% range would be a more appealing entry point for investors.
Both companies have strong long-term prospects, but their high valuations may deter some investors. However, with the potential for a market pullback, now is the time to familiarize yourself with Eaton and Emerson Electric so you can be ready to buy when the prices become more attractive. As past performance has shown, both stocks have experienced significant drawdowns in the past, making them potential bargains in the future.
