Wednesday, February 3, 2016

Recent Buy: Emerson Electric

Good morning,

This morning was a great morning because I finally got to cash in on EMR. If you've been reading my blog recently, you'd know that I have been keeping my eye on this company for some time now. Last night my budget finalized for January and I confirmed how much I could invest. Thankfully, the Mrs. and I did very well even though we did spend a bit of cash on the honeymoon that we went on for two weeks. This left a good reserve that was sizable enough to cash in on some stock for the month.

Purchase information:

16 shares of EMR (Emerson Electric) at $45.65/share on 2/3/2016 - total: $740.39 (fee included)

Overview of purchase:

Emerson Electric is a strong choice in the industrial sector. Over the last five years its EPS has raised 9.02%. In addition, it their dividend has grown an average of 7.01% per year. With the upcoming ex-dividend date and the still discounted price on this stock, today seemed a very appropriate time to buy. Although the company has seen some downturn lately as their company is highly affected by oil prices which as everyone knows have been down to say the least, the company continues to take action to control their business model by restructuring to fit the times. Unfortunately, cuts will be made in the company and there will be losses to those who work for them but if the company can ultimately come out of this slump in the oil business, they can likely reopen closed sectors to regain full capacity at a later time if oil returns to its normal heartiness.

Thankfully, regardless of how oil is doing, EMR can make profits off of the other sectors that it runs out of. You don't win discount stocks for no reason. With every gamble comes the risk of loss or profit. I think however that based on the company history and the dedication they have to pay dividends throughout the years, EMR will pull out on top and ultimately fulfill the needs of my portfolio.

Now it's your turn:

What do you think of the recent purchase? Would you have gone about it differently? Do you hold EMR in your portfolio?


  1. EMR is a great buy. It had a rough 2015 and continues to face many headwinds which of course is giving us some great current yield as stock prices have fallen. I recently added to this name as well and continue to look at it this month. Thanks for sahring.

    1. Glad to know you're knee deep in the same boat! Let's hope that we're riding a rich ship and not one with tons of holes in it!