Things are definitely starting to get interesting with the market these days. Increasingly, more and more companies are trading at much better values and yields as prices have tumbled. Of course, the question of dividend reliability comes into play when dramatic price swoons occur. This is why we diversify among dozens of high quality companies in case the dreaded dividend cut or elimination occurs. For now, I am not too concerned over the sustainability of the dividends being paid from any of my portfolio holdings. Even with world economic bellwether Caterpillar Inc. (CAT) announcing massive layoffs signaling a slowdown in global growth, I do not feel overly worried about the longer term prospects if this cyclical giant.
As you know, I have been adding to my Canadian bank holdings in earnest for quite some time building up a nice position in The Toronto-Dominion Bank (TD), The Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY). These days, many quality industrial names are getting hammered as well and value and yield is looking compelling in this sector as well. With that being said and sticking with my September stock considerations:
I have added to my taxable account 17.9720 shares at $44.63 for a total investment of $802.00 in Emerson Electric Co. (EMR). With this recent purchase my taxable account holdings in EMR now totals 57.9694 shares for a value of $2,530.94. I also hold 53.0756 shares of EMR in my ROTH account.
We’ll see what’s in store for the last few days of September. If heavy price slides continue in many of the names I currently hold another buy might be warranted before the quarter ends.
What do you think about my recent purchase? Are any of the names mentioned above in your portfolio and/or watch list? Please let me know below.
Disclosure: Long TD, RY, BNS, EMR