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Tuesday, November 10, 2020

Home Run Number 26

Last Sunday I reported DivGro's 25th home run, Air Products and Chemicals, Inc (APD). Stocks achieve home run status when their total returns exceed my initial capital outlay. For dividend growth stocks, total returns include both unrealized gains and dividends received. But for stocks that don't pay dividends, the share price has to double my cost basis in order for the stock to become a home run stock. 

Today I'm presenting DivGro's 26th home run, an achievement that comes after 534 days of ownership. That's a remarkable performance, as the stock has delivered stellar annualized returns of 78%!

DivGro's Home Runs


Here is a list of DivGro's home runs with updated total returns (and annualized total returns):
  • Home run #1: General Dynamics (GD) — up 46% (14% 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) — down 2% (-1% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 93% (17% annualized)
  • Home run #7: Microsoft (MSFT) — up 401% (81% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 108% (33% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 156% (25% annualized)
  • Home run #11: AbbView (ABBV) — up 75% (17% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 39% (20% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 17% (29% annualized)
  • Home run #14: Netflix (NFLX) — up 153% (58% annualized)
  • Home run #15: Intel (INTC) — up 134% (19% annualized)
  • Home run #16: Valero Energy (VLO) — down 19% (-5% annualized)
  • Home run #17: Aflac (AFL) — up 74% (15% annualized)
  • Home run #18: Apple (AAPL) — up 367% (75% annualized)
  • Home run #19: Xcel Energy (XEL) — up 140% (28% annualized)
  • Home run #20: Amazon.com (AMZN) — up 164% (61% annualized)
  • Home run #21: Salesforce.com (CRM) — up 88% (44% annualized)
  • Home run #22: Procter & Gamble (PG) — up 105% (16% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM) — up 123% (62% annualized)
  • Home run #24: Pinterest, Inc (PINS)— up 135% (624% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD)— up 100% (52% annualized)

      Please note that 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. And if I buy additional shares of a home run stock at a higher cost basis, the calculated total returns could also drop below 100%.

      I've reopened positions in NOC and DLR, both of which achieved home run status before I closed my original positions. Repeat positions like NOC and DLR will have to earn home run status again... they don't get a free ride!

      Below is a snapshot of DivGro's existing home run stocks, sorted by annualized returns (>1 year):


      Home Run #26


      My 26th home run stock is QUALCOMM Incorporated (QCOM). 

      QCOM spiked higher on Thursday after an earnings surprise and an optimistic outlook that reflects strong 5G demand. QCOM made a new 52-week high of $148.80, well above double my cost basis of $69.41 per share. 

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



      I've received $134.30 in dividends since opening the position.

      Here is a price chart of QCOM indicating my buy on 22 May 2019:



      Home Run Contenders


      There are three stocks that are approaching home run status: 
      1. Cummins Inc (CMI) -- total returns of 96%
      2. NextEra Energy, Inc (NEE) -- total returns of 93%
      3. Lowe's Companies, Inc (LOW) -- total returns of 88%

       

       



      CMI has the lead, but we'll see which of these stocks doubles my initial investment first. 

      Concluding Remarks


      With total returns exceeding my initial investment, QCOM is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes my 27th home run!

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