Portfolio Update: New Addition (EMR; July 12, 2012)

The last time Emerson Electric (EMR) dropped below $44, I was short on cash and unable to add to my position. I woke up this morning, fired up the watchlist, and to my surprise, found the stock “on sale” again. Since my original purchase price was $49, I thought now was a good time to dollar cost average down. I bought 20 shares at $43.67/share. I now own 45.212 shares. With a current payout of 40 cents per quarter, this amounts to a payout of $18.08. I’m looking forward to the next distribution in September!

Wall Street is now down a sixth consecutive trading session. With so many headwinds and unfavorable predictions for the global economy coming out on a daily basis (or so it seems), I am being cautious and easing into new positions slowly. Cyclicals may take further beatings yet (today’s headline: China’s economic growth slows down to a three year low), so I am watching this sector with much interest. Caterpillar (CAT) is one company, in particular, that I would like to initiate a position in. As of today’s closing, CAT is priced at $79.64/share. This is down a staggering ~32% from its recent high of $116.95 back in February. Let’s be patient and see how things unfold…

 

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Dividend Maven
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I agree that patience is key in this market. One of my limit orders was fulfilled for UTX when it crossed above a 3% yield, but it could see even lower stock prices in the coming weeks.

Compounding Income
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That’s a nice price on EMR, I like it as a long term holding. I think you have a point about cyclical stocks being where the value is at the moment. I was disappointed to see the market went up on Friday, I was looking to buy some INTC or APD. It’s a pain to buy stocks now that I’m Korea. The US stock market opens at 10:30PM here, haha. Good thing limit orders were invented.

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