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.


  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.

To follow the IPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, click here. To see the IPIG portfolio's online tracking spreadsheet, click here.

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.