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Tuesday, January 12, 2021

Home Run Number 28

Last week, I recorded my 28th home run in my DivGro portfolio. A stock gets home run status when its total returns exceed my initial capital outlay. For dividend growth or dividend-paying stocks, total returns include both unrealized gains and dividends received. 

I announced my previous home run, Cummins Inc (CMI), on 13 November 2020, after I'd owned the stock for 5 years and 6 months. 

Today's home run stock took only 2 years and 7 months to achieve that feat! 

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 33% (16% 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 7% (2% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 78% (20% annualized)
  • Home run #7: Microsoft (MSFT) — up 393% (76% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 118% (34% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 55% (25% annualized)
  • Home run #11: AbbView (ABBV) — up 100% (22% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 31% (14% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 41% (52% annualized)
  • Home run #14: Netflix (NFLX) — up 151% (53% annualized)
  • Home run #15: Intel (INTC) — up 163% (23% annualized)
  • Home run #16: Valero Energy (VLO) — down 13% (3% annualized)
  • Home run #17: Aflac (AFL) — up 106% (20% annualized)
  • Home run #18: Apple (AAPL) — up 419% (83% annualized)
  • Home run #19: Xcel Energy (XEL) — up 30% (22% annualized)
  • Home run #20: Amazon.com (AMZN) — up 154% (54% annualized)
  • Home run #21: Salesforce.com (CRM) — up 61% (28% annualized)
  • Home run #22: Procter & Gamble (PG) — up 101% (15% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM) — up 174% (62% annualized)
  • Home run #24: Pinterest, Inc (PINS)— up 161% (414% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD)— up 87% (42% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM)— up 132% (81% annualized)
  • Home run #27: Cummins Inc (CMI)— up 101% (25% 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. Also, 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):

      Twenty-four of my existing positions are home run stocks. The Information Technology stocks AAPL, QCOMMSFT, and TSM top the list based on annualized returns. I'm also happy that some of my growth stocks, AMZN and NFLX are near the top of the list as well. 

      Home Run #28

      My 28th home run stock is NextEra Energy, Inc (NEE), an electric power company with operations in the United States and Canada.

      I opened my position of 100 shares on 20 June 2018, paying $40.76 per share and getting an initial yield on cost (YoC) of 2.72%. Today, NEE yields 1.73%, and my YoC has increased to a respectable 3.44%.

      Here is a price chart of NEE indicating my opening trade:

      Source: Trading View

      Home Run Contenders

      There are three stocks in my portfolio that are approaching home run status: 
      1. BlackRock, Inc (BLK) -- total returns of 98%
      2. Texas Instruments Incorporated (TXN) -- total returns of 95%
      3. T. Rowe Price Group, Inc (TROW) -- total returns of 93%

      BLK has the lead and we'll see if and when it achieves home run status! 

      Concluding Remarks

      With total returns exceeding my initial investment, NEE is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes my 29th home run!

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