Just wanted to bring to your attention that I recently added Emerson Elecrtric (EMR) to my dividend portfolio. EMR is a company that I’ve considered numerous times before but didn’t really have the will power to pull the trigger. Well, it’s a New Year. And with that comes new motivation. So, here are my reasons for adding EMR.
My portfolio is held at two separate institutions. The first is Capital One Investing and the other is Computershare. With Capital One Investing, I participate in their Advantage program. Basically, I invest in 12 stocks one time per month for $12 a month. That’s a whopping $144 a year in brokerage fees to participate in a psuedo DRIP. At present, I’m unwilling to spend more than at Capital One Investing. In fact, I will pay $1 extra per month for every additional company I invest in.
The $12 per month is kind of high, but because I’m invested in 12 stocks, the average price is about $1 per stock. Also, because I invest $1010 per month, the $12 for brokerage fees to me is a reasonable 1.19% of my investment amount.
However, things are a bit different with Computershare. There, I choose to invest in no-fee DRIPs. So, I don’t pay any fees for investing directly with the companies through their Transfer Agent.
So, one of the reasons why I chose EMR is because I can invest in their no-fee DRIP at Computershare.
More About EMR
Of course, fees are not the only reason to invest in a company. I like EMR because, for starters, it’s a Dividend King. EMR has raised it’s dividend each year for the past 60 years.
Here is Sure Dividend’s description of EMR:
“Emerson Electric is a multinational industrial service firm with a market capitalization of ~$38 billion. Founded in 1890, Emerson Electric has more than 110,000 employees and 205 manufacturing locations across the globe.”
EMR is a solid company with a wide moat and is a staple in many dividend portfolios. Still, all is not rosy with EMR. For starters, I’m not a huge fan of their current dividend yield which is at 2.66%. I rather prefer to invest in companies with a minimum of 3% dividend yield. However, I’m hoping that yield on cost will work out in my favor decades from now when I’m ready to reap the benefits from my dividend investing.
Additionally, the current price of EMR is $73.14, which is very close to its 52 week high $74.45. So, I realize I might not be getting in at the best price. However, I’m a long term investor and I dollar cost average my way into stocks. I plan to do the same with Emerson Electric.
I purchased $250 worth of EMR and am now the proud owner of 3.2 shares. This added $6.22 to my forward annual dividends. I plan to contribute $80 per month to the company.
What do you think of my recent buy? Let me know your thoughts by commenting below.