NEW YORK (Reuters) - Emerson Electric Co. (EMR.N: Quote, Profile, Research, Stock Buzz) could spend as much as $8 billion on mergers and acquisitions over the next five years, the diversified manufacturer's chief executive said on Wednesday.
"We could go all the way up to $8 billion based on cash generation," David Farr told the Reuters Manufacturing and Transportation Summit in New York. "We're out courting constantly."
Farr said Emerson followed a disciplined acquisition strategy that focused on a business's long-term fit either in terms of new technology or geographic reach. Emerson expects to spend about $1 billion this year, and next year's M&A spending could range anywhere from $500 million to $2 billion.
"Could we do $2 billion? Yes, we have big ones we go after, too," Farr told the summit.
Separately, the company expects to raise its dividend this year for the 50th consecutive year, dedicating about $700 million to dividends. It estimates spending $500 million this year on share buybacks, despite the stock's recent strength.
"The stock is still worth a little more than $85 today," Farr said.
Emerson's stock was trading at $83.22 on Wednesday.
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