Stability or Growth – This Industry has Both: Emerson Electric Co. (EMR)

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General Electric Company (NYSE:GE) has always been like candy for investors because of its shareholder friendly dividend policies and stable performance over the last century. The company is poised to grow if the economy improves, and with its global presence it looks better placed than any of its peers to extract benefits out of growth in emerging markets.

The company has had amazing profitability to support its growth in revenue, and its order backlogs reached $210 billion in Q4 2012, which indicates its future sales capacity. The company has a robust balance sheet with about $125.7 billion in cash, but the only concern is its high debt levels of $414 billion.

Foolish final

Emerson looks fairly valued at its current prices, but investors’ are enthusiastic, as the company has delivered good results which can drive the share prices higher. The company also looks to benefit from the improving Chinese market. I would recommend investors hold onto their stocks, but would not advise them to make any fresh investments.

ABB Ltd. is better placed, with its acquisitions delivering desired results. The company’s global reach and strong balance sheet should help improve its stock prices in the near future. I believe this stock is a good investment. General Electric is a stable company that has earned investors faith with its consistent performance. The stock prices of the company might not provide huge upsides, but they will surely provide good returns and cash flow towards investors with dividends currently yielding 3.5%.

The article Stability or Growth – This Industry has Both originally appeared on Fool.com and is written by Nitesh santhalia.

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