I’m using today’s bounce to sell Emerson Electric (EMR) out of my Jubak Picks Portfolio today. The shares are up 3.54% today.
I think Emerson Electric is a stock that I’d like to own for the long-term if the short-term didn’t look so negative for the economy as a whole. I can’t see Emerson’s customers for its process control, automation, and Internet of Things equipment stepping up to buy when they’re doing everything they can to conserve their own cash in order to get through the coronavirus recession. I think the first stage of this recovery–one that I expect to take longer to build momentum on the upside than it did on the downside–will bring customers back to Emerson. It is, to my way of thinking, best in class in much of what it does.
And I certainly like the hefty 4.37% dividend yield on this stock. That dividend is safe, in my opinion, since the company sports a payout ratio of slightly below 17%.
My thinking is that I’d like to buy this back, probably in my Dividend Portfolio, sometime in later April. That would be in time to catch the next dividend–likely to be announced in the first week of May if past history holds. And it is likely to get me back in at a lower price than today’s $47.32.
I show a loss of 29.56% since I added Emerson to my Jubak Picks Portfolio on February 6, 2019.