Sunday, January 3, 2021

DivGro's Best and Worst Performers in 2020

Now that 2020 is in the rearview mirror, I wanted to review the best and worst performers in my DivGro portfolio in 2020. 

In this review, I considered only positions I owned throughout 2020. These include dividend growth stocks, dividend-paying stocks, growth stocks, and one closed-end fund. 

Of the 72 positions I've owned throughout the year, 18 stocks had negative returns for the year. On average, these positions are up 15.6% for the year, though if I use a weighted average instead of an arithmetic average, the return is a more impressive 20.4%! These returns exclude dividends. 

My worst performer was Valero Energy Corporation (VLO), down 40% since 1 January 2020. This year's best performer is Taiwan Semiconductor Manufacturing Company Limited (TSM), whose stock price increased by 85% in 2020!

Here is a chart showing the price performance of DivGro positions I owned each and every day in 2020:


Given the market crash in late February and early March, I'm thrilled with DivGro's overall performance and, especially, to see no fewer than six positions with returns topping 60%!

It is also informative to look at the annualized returns of these positions, including dividends:


It is great to see that every position has positive annualized returns! The three top-performing positions are Information Technology sector stocks, Apple Inc (MSFT), Microsoft Corporation (MSFT), and QUALCOMM Incorporated (QCOM), all with annualized returns topping 75%!

I have ten positions with triple-digit percentage returns and one just shy of that mark:


Two of these positions are growth stocks, Netflix, Inc (NFLX) and Amazon.com Inc (AMZN). I find it interesting that most of these stocks have rather small current yields, meaning a significant portion of the returns come from share price growth.  For Intel Corporation (INTC), I've received more than a third of my original investment back in the form of dividends. 

Ten Worst Performers


The following table presents DivGro's ten worst-performing positions in 2020. These are all stocks I owned on 1 January 2020 and that I still own today:


 DivGro's Worst Performers of 2020 
 
Ticker
 Company
Sector
Total Return
VLO Valero Energy CorporationEnergy-39.9%
T AT&T Inc Communication Services-24.0%
MAIN Main Street Capital Corporation Financials-23.7%
NNN National Retail Properties, IncReal Estate-20.4%
INTC Intel Corporation   Information Technology -16.7%
GD General Dynamics Corporation   Industrials-16.1%
AFL Aflac Incorporated    Financials-15.1%
MO Altria Group, Inc Consumer Staples-15.0%
LMT Lockheed Martin Corporation   Industrials-10.0%
WPC WP Carey IncReal Estate  -9.5%

Ten Best Performers


The following table presents DivGro's ten best-performing positions in 2020. These are all stocks I owned on 1 January 2020 and that I still own today:


    DivGro's Best Performers of 2020    
 
Ticker
 Company Sector
Total Return
TSM Taiwan Semiconductor Manufacturing
 Company Limited
 Information Technology84.7%
AAPL Apple Inc Information Technology 79.1%
QCOM QUALCOMM Incorporated                      Information Technology73.7%
AMZN Amazon.com, Inc Consumer Discretionary71.7%
FDX FedEx Corporation Industrials68.5%
NFLX Netflix, Inc Communication Services 64.5%
UPS United Parcel Service Industrials45.4%
BLK BlackRock, Inc Financials42.0%
NKE NIKE, Inc Consumer Discretionary 39.8%
MSFT Microsoft Corporation Information Technology 39.3%

Concluding Remarks


Of the 72 positions I've owned throughout the year, more stocks had positive returns for the year than negative returns. The weighted average return of these stocks was 20.4%, which easily outpaced the S&P 500's 16.3% return. 

Thanks for reading! If you liked this article and would like to read similar articles in future,
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—•—•—
I wish you a healthy, happy, and prosperous 2021! 

4 comments :

  1. Hi Ferdis. Congratulations for your performance.
    What do you think about the last two list.
    May be the worst of 2020 are going to have a good 2021.
    And the best? Do you think they are going to repeat or may be they are too expensive now?
    I´ve been reading you for more than a year and i think I understand more or less the way you decide to take a decision but...
    How you decide to sell some stocks? May be tech analysis? Value analysis?
    Too high Fair value valuation?

    Regards.

    ReplyDelete
    Replies
    1. Hi, Lionel -- thanks for your comment and questions.

      It is futile to make any predictions, so I don't base investment decisions based on how a stock has performed in the previous year.

      Compare the lists with last year's:

      https://divgro.blogspot.com/2020/01/divgros-best-and-worst-performers-in.html

      Only MO repeated in the worst list, though I closed WBA, XOM, and GILD for tax-loss harvesting, so they would have made the list again otherwise.

      AAPL and MSFT repeated in the the best list.

      LMT was in the best list in 2019 and now is in the worst list. No other stocks swopped in this way.

      I sold few stocks in 2020, mostly to harvest tax losses. I don't like selling winners as that increases taxes. If a stock cuts or suspends its dividend, I usually sell. And if a business' prospects deteriorate, I'll divest. That happens infrequently because I invest in high quality stocks, generally.

      Delete
  2. Great job,thank you for sharing,please keep updating,good luck on your 2021 achievement!

    ReplyDelete
    Replies
    1. Thanks for your comment of support, I appreciate it! Take care and happy investing!

      Delete

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