Tuesday, April 17, 2018

Home Run Number 15

Just more than a month ago, I reported on DivGro's Home Run Number 14, Netflix (NFLX). Recall that I use the term home run to describe any position in DivGro that crosses the 100% mark in total returns.

In that article, I identified two stocks that most likely would become Home Run #15. Aflac (AFL) was the forerunner by the slightest of margins, but I said I wouldn't be surprised if Intel (INTC) ended up winning the race. INTC had the momentum with 1-year returns of about 41%, versus AFL's 23%.

Today I reveal the winner, which officially becomes the 15th home run of DivGro.


Previous Home Runs


Here is the list of DivGro's previous home runs, with updated total returns (and annualized total returns):
  • Home run #1: General Dynamics (GD) — up 248% (48% annualized)
  • Home run #2: Nippon Telegraph & Telephone (NTT) — closed for 125% gain (37% annualized)
  • Home run #3: Digital Realty Trust (DLR) — closed for 102% gain (44% annualized)
  • Home run #4: Altria Group (MO) — up 107% (25% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 56% (21% annualized)
  • Home run #7: Microsoft (MSFT) — up 241% (50% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 188% (49% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 87% (24% annualized)
  • Home run #11: AbbView (ABBV) — up 59% (32% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 105% (31% annualized)
  • Home run #13: Raytheon (RTN) — up 119% (40% annualized)
  • Home run #14: Netflix (NFLX) — up 122% (146% annualized)
Once a position reaches home run status, it retains that status even if a stock price drops and total returns dip below the 100% mark. (See MCD and ABBV above). Furthermore, if I buy additional shares of a home run stock at a higher cost basis, the calculated total returns could drop below 100% as well, such as with MAIN above.

Home Run #15


My 15th home run stock is INTC, a company that designs, manufactures, and sells computer, networking, and communications platforms worldwide. The company was founded in 1968 and is based in Santa Clara, California. 

INTC no longer is a dividend growth stock, having frozen its dividend in 2014.


I own 570 shares of INTC and the table above shows the buying date, number of shares, and cost basis of each lot. The average cost basis is $28.01 and the average yield on cost is 4.28%.

Today, INTC closed at $53.54 per share and the stock yields 2.24%.

Notice that INTC's share price is not yet double my average cost basis. But I've collected $1,752 in dividends over the years, which pushes this holding above the 100% mark in total returns.

Here is a six-year price chart of INTC showing my buy prices:


INTC has performed well since my first buy in 2012, but the performance since September 2017 has been fantastic! I am very happy that I decided to hold onto my shares when the company froze its dividend in 2014!

Home Run Contenders


AFL is the only DivGro position that is close to home run status. The stock is at 97% and shows an annualized profit of 19%.

There are three stocks with total returns above 70%:
  • Valero Energy (VLO) — up 79% (48% annualized)
  • Apple (AAPL) — up 76% (33% annualized)
  • Travelers (TRV— up 72% (15% annualized)
VLO has the momentum, given its 1-year return of about 68% versus AAPL's 27% and TRV's 14%.

Concluding Remarks


INTC is a dividend paying stock. The company froze its dividend in 2014, only to start increasing its quarterly dividend again in 2015 and beyond. The stock will become a dividend growth stock again if INTC increases its dividend in 2018 and again in 2019. Meanwhile, I'm happy to hold my shares and see the stock price go higher, hopefully!

Thanks for reading! Tell me about your own home run stocks and how many you have in your portfolio.

2 comments :

  1. Great looking list of stocks! Way to go!

    ReplyDelete
    Replies
    1. Thanks, American Dividend Dream -- appreciate the comment!

      Delete

Please don't include irrelevant links in comments. I will mark such comments as spam and the comment won't be published. To make me aware of your blog or website, comment on my Blogrole page instead.

Contact Form

Name

Email *

Message *

Follow by Email