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Friday, August 28, 2020

Home Run Number 22

Just yesterday I announced DivGro's 21st home run, a designation I give to stocks in my portfolio when total returns exceed my initial investment for the first time.

Salesforce.com (CRM) joined the list of home run stocks after it exploded higher when the ACcompany reported stellar earnings and raised guidance this week. CRM will also join the Dow Jones Industrial Average on before trading resumes on August 31.

Today I'm presenting my 22nd home run stock. It happens to be the stock I've been eyeing for weeks now, expecting an imminent home run! After looking at yesterday's trading range, it appears that this stock actually crossed the threshold to become a home run stock!

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 58% (18% 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 9% (3% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 99% (19% annualized)
  • Home run #7: Microsoft (MSFT) — up 406% (85% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 87% (28% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 150% (25% annualized)
  • Home run #11: AbbView (ABBV) — up 77% (18% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 51% (29% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 21%
  • Home run #14: Netflix (NFLX) — up 159% (65% annualized)
  • Home run #15: Intel (INTC) — up 150% (22% annualized)
  • Home run #16: Valero Energy (VLO) — up 3% (1% annualized)
  • Home run #17: Aflac (AFL) — up 73% (15% annualized)
  • Home run #18: Apple (AAPL) — up 391% (83% annualized)
  • Home run #19: Xcel Energy (XEL) — up 125% (26% annualized)
  • Home run #20: Amazon.com (AMZN) — up 171% (68% annualized)
  • Home run #21: Salesforce.com (CRM) — up 100% (55% 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.

I recently reopened a position in NOC and I reinvested in DLR about eighteen months ago. NOC essentially is flat and DLR has returned 45% or 24% on an annualized basis. Any repeat position will have to produce total returns of 100% in order to earn home run status, just like any other stock in my portfolio.

Home Run #22


My 22nd home run stock is Procter & Gamble (PG). The stock made a new 52-week high of $139.69 yesterday and, in doing so, registered total returns (including dividends) that exceeded my initial investment. 

Here is a table showing the buy date, number of shares, and cost basis of my PG shares:



The cost basis of my 25 shares is $78.59. When PG traded above $139.08 per share on 27 August, PG officially became a home run stock in my portfolio.

Here is a price chart of PG indicating my buy on 24 February 2014:



Home Run Contenders


I have another position that is possibly reached home run status, Taiwan Semiconductor Manufacturing (TSM). I need to do some confirming calculations, though, so perhaps you'll see another of these milestone articles tomorrow!

The other stock that is a contender is Air Products and Chemicals (APD), which has total returns of 91%.



I'm looking forward to celebrating my next home run very soon!

Concluding Remarks


With total returns exceeding my initial investment, PG is the latest home run stock in my DivGro portfolio. The stock's recent performance is remarkable and way beyond my expectations, and I'm happy to celebrate another home run!

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