Portfolio Update
The FiveTwenty portfolio received $79.59 in dividends in the past week. GPC and MDU paid their quarterly dividends during the week.
| Past Week Dividend | $79.59 |
| Current Quarter Dividend (Q4 2022) | $79.59 |
| LifeTime Dividend | $6,374.87 |
| Estimated Annual Dividend | $6,670.88 |
The capital allocation for the week of 10/09/2022 to 10/15/2022 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 38 of 2022, there have been no significant financial developments for the company. The share price decreased from $78.21 to $77.83.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 65 years | 65 years | |
| Yield | 2.65% | 2.63% | 2.89% |
| Payout Ratio | 41.78%1 | 41.78%1 | |
| P/E | 15.791 | 16.581 |
1 computed using TTM adjusted EPS of $4.93 as of Q3 2022
Q3 2022 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) | 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.
Thesis
Why are we adding to our position in EMR?
With no significant developments for EMR in since the last update, 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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