Thursday, August 2, 2018

Home Run Number 18

Well, that was quick!

Only three days ago I reported home run #17—and here I'm back to celebrate home run #18!

Aflac (AFL) beat out Apple (AAPL) to become DivGro's seventeenth home run, but it didn't take the tech giant long to also cross the 100% mark in total returns in my portfolio.

Last time I mentioned that AAPL was involved in another race, with Amazon (AMZN), to become the first ever trillion dollar company. This morning it was widely reported that AAPL reached trillion dollar status, but, in fact, AAPL needed to hit $207.05 to do so.


Nevertheless, based on AAPL's share price action post earnings, it is likely that the company will hit that price soon:

The reason that sites like Yahoo! Finance report a $1.01T market value is that they're not yet using updated outstanding share numbers in their calculations, which AAPL happened to update yesterday.

Update: AAPL in fact traded at $207.05 today, so the company officially became the first $1T company ever!

Another Update: AAPL in fact traded at $207.05 today, so the company officially became the first $1T publicly traded company ever!


Previous Home Runs


Here is a list of DivGro's previous home runs with updated total returns (and annualized total returns):
  • Home run #1: General Dynamics (GD) — up 209% (38% 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 26% (6% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 66% (22% annualized)
  • Home run #7: Microsoft (MSFT) — up 276% (54% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 49% (12% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 79% (20% annualized)
  • Home run #11: AbbView (ABBV) — up 63% (30% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 91% (24% annualized)
  • Home run #13: Raytheon (RTN) — up 91% (28% annualized)
  • Home run #14: Netflix (NFLX) — up 125% (111% annualized)
  • Home run #15: Intel (INTC) — up 87% 30% annualized)
  • Home run #16: Valero Energy (VLO) — up 93% (48% annualized)
  • Home run #17: Aflac (AFL) — up 102% (19% annualized)
Once a position reaches home run status, it retains that status even if the stock price drops and the total returns dip below the 100% mark. 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.

Home Run #18


My 18th home run stock is Apple (AAPL), the designer and manufacturer or mobile communication and media devices, personal computers, and portable digital music players. AAPL also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.

AFL is a Dividend Challenger with a streak of 7 consecutive years of higher dividend payments. I own 100 shares of AAPL, which should deliver dividends totaling about $292 in the next year.

Here is a table showing the buy dates, number of shares, and cost basis of each lot of AAPL shares:


The average cost basis of my 100 shares is $104.41. With AAPL trading at about $205.89 per share, the stock yields 1.42% but my yield on cost is 2.8%.

Although AAPL's share price is not yet double my average cost basis, I've collected about $593 in dividends since July 2015. This pushes total returns above the 100% mark.

Here is a price chart of AAPL indicating my buys since 30 July 2015:


Home Run Contenders


AMZN has returned 81% (or 72% annualized). The stock does not pay dividends, so AMZN needs to hit a share price of $1,995 in order to reach home run status.

In second place is T. Rowe Price (TROW), which has returned 65% (or 27% annualized) since my initial investment in March 2015.

It looks like it will be a while before I can announce home run #19!

Concluding Remarks


With total returns of about 103%, AAPL is the latest home run stock in my DivGro portfolio.

AAPL needs to hit $207.05 per share to become the first trillion dollar company. As I'm writing this, the stock price is $206.57, so we're very close to that milestone!

Update: AAPL in fact traded at $207.05 today, so the company officially became the first $1T company ever!

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

6 comments :

  1. In your about page it says how much you have invested so far since 2013 per year (~$126k) but on your portfolio page you say that your capital invested is 446k. Which is correct after all ?

    ReplyDelete
    Replies
    1. Those are "recurring monthly investments". That is, capital invested every month. I also make "bonus deposits" (infrequently), and I deposit money I make from publishing articles and advertising on my blog.

      Delete
  2. Ops...APPL is the first american trillion dollar company...3 others have reached that milestone before FYI

    ReplyDelete
    Replies
    1. It is AAPL -- and which 3 companies are trillion dollar companies?

      Delete
    2. PetroChina got there first (not anymore tho), Dutch East India Co., South Sea Co, Saudi Aramco

      Delete
    3. Thanks for answering. PetroChina is partially government-owned. It briefly traded above $1T but it has lost nearly 80% of that (speculative) value. Saudi Aramco is government-owned. As far as I can tell, the others never reached $1T status unless you do an inflation adjustment.

      "PetroChina, a state-owned oil giant, was the first company to hit this mark during its initial public offering in 2007, though its value has declined dramatically since then. Apple on the other hand is the first non-state-owned company to reach this stratospheric valuation on its own merits through a long, sustained upward climb without implicit government guarantees or backing."

      https://www.dw.com/en/apple-is-the-worlds-first-trillion-dollar-company/a-44931038

      and also:

      http://time.com/money/5282501/apple-trillion-biggest-companies-in-history/

      Delete

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