Abstract: The present invention provides an aqueous emulsion shear stable coating vehicle comprising a polyalkylene glycol modified alkyd resin. The alkyd resin may be modified by incorporating polyoxyalkylene glycol segments into the backbone of the alkyd resin. In one embodiment the alkyd resin is derived from the reaction of at least one natural oil and an acid and/or acid anhydride and polyhydric alcohol. The resulting shear stable coating vehicle can be combined with a pigment under high shear conditions to provide a paint composition.