Portfolio Update
The FiveTwenty portfolio received $515.72 dividends in the past week. HD, K, MMM, ORI, and PII paid their quarterly dividend during the week. In addition, ORI also paid a one time special dividend during the past week.
| Past Week Dividend | $515.72 |
| Current Quarter Dividend (Q3 2022) | $1,534.32 |
| LifeTime Dividend | $6,141.48 |
| Estimated Annual Dividend | $6,422.45 |
The capital allocation for the week of 09/18/2022 to 09/24/2022 will be used to add to our position in Emerson Electric Co (NYSE: EMR)
EMR – Position Update
Since our last check-in on EMR in week 36 of 2022, there have been no significant developments. The share price decreased 4.3% from $81.75 to $78.21.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 65 years | 65 years | |
| Yield | 2.63% | 2.52% | 2.89% |
| Payout Ratio | 41.78%1 | 41.78%1 | |
| P/E | 16.581 | 16.581 |
1 computed using TTM adjusted EPS of $4.93 as of Q3 2022
EMR earnings report
Did EMR’s latest earnings report raise any warning flags?
We discussed EMR’s Q3 2022 earnings in our previous update. Overall, revenues grew 7%, net income increased 47%, and adjusted EPS were 16% higher than in Q3 2021.
| Revenue (in millions) | Net Income (in millions) | Adj. EPS . | |
| Q3 2021 | $4,697 | $627 | $1.19 |
| Q3 2022 | $5,005 | $921 | $1.38 |
| % Change | 7% | 47% | 16% |
Additional noteworthy developments during the quarter:
- See previous update.
Looking ahead, EMR expects full year 2022 revenue to grow 7-8% and adjusted EPS to come in between $5.05 to $5.15, an increase of 23% to 26% over 2021.
Thesis
Why are we adding to our position in EMR?
With no significant developments for EMR in the last week, our investment thesis remains the same. With the current investment we are merrily building our position in the company at an attractive valuation.
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