Emerson Electic (NYSE:EMR) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons he's holding on to Emerson Electric's stock despite its 21% increase since he bought those shares in February 2013.

Summary:

  1. Emerson Electric's market capitalization is right around the IPIG portfolio's fair-value estimate.
  2. Emerson Electric sports a solid balance sheet with a debt-to-equity ratio around 0.5, which suggests the company should have little trouble rolling over its debt in the near future.
  3. Emerson Electric has a healthy, well-covered dividend with recent growth, a better-than-50-year history of growth, and room to continue growing as the company does.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.