Saturday, August 29, 2020

Home Run Number 23

Well, this is fun! Three home run posts in three days!

On Thursday, I celebrated DivGro's 21st home run, and yesterday I celebrated the 22nd home run. For readers not familiar with the designation, I give it to any stock in my portfolio when its total returns exceed my initial investment for the first time.

Salesforce.com (CRM) joined the list of home run stocks after it exploded higher this week following stellar earnings. Procter & Gamble (PG) did so after making a new 52-week high on Thursday.

Today I'm presenting DivGro's 23rd home run stock. After doing some confirming calculations, it turned out that this stock also crossed the threshold on Thursday, 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 10% (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 411% (86% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 89% (28% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 153% (26% 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 24%
  • Home run #14: Netflix (NFLX) — up 158% (64% annualized)
  • Home run #15: Intel (INTC) — up 155% (23% annualized)
  • Home run #16: Valero Energy (VLO) — up 5% (1% annualized)
  • Home run #17: Aflac (AFL) — up 74% (15% annualized)
  • Home run #18: Apple (AAPL) — up 390% (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 96% (53% annualized)
  • Home run #22: Procter & Gamble (PG) — up 100% (15% 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 #23


My 23rd home run stock is Taiwan Semiconductor Manufacturing (TSM). The stock made a new 52-week high in August and, in doing so, registered total returns (including dividends) that exceeded my initial investment. 

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



The average cost basis of my 300 shares is $42.42. When TSM traded above $81.95 per share on 27 August, TSM officially became a home run stock in my portfolio.

Here is a price chart of TSM indicating my buys since 14 March 2018:



Home Run Contender


After three consecutive home runs, it appears that I would have to wait a while for the next one. Air Products and Chemicals (APD) is a contender with total returns of 93%. We'll see how long it takes for APD to become a home run stock.




Concluding Remarks


With total returns exceeding my initial investment, TSM is the latest home run stock in my DivGro portfolio. The stock's performance since July is remarkable, having increased about 43% in about three months. Cheers to another home run!

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6 comments :

  1. Any opinions on PRU? Would you buy it? why not?

    ReplyDelete
    Replies
    1. I focus on buying high-quality stocks based on DVK Quality Snapshots:

      (https://seekingalpha.com/instablog/1033943-ferdis/5389052-dvk-quality-snapshots).

      PRU scores only 15, so it's not a high-quality stock. Yield is good and it is trading at a discount, though.

      Delete
  2. 2 of my Home runs are AAPL/MSFT .Congrats on the home runs.

    ReplyDelete
    Replies
    1. Congrats on your home runs! For me, AAPL is at 355% and MSFT is at 368%. If all goes well, I might just have some Grand Slams soon!

      Delete
  3. Almost similiar percentages,just noticed My TDameritrade is showing few more of these home runs

    ReplyDelete
    Replies
    1. That's great! Some of these growth stocks have been remarkable!

      Delete

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