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Thursday, January 14, 2021

Home Run Number 29

On Tuesday, I reported DivGro's 28th home run, a designation I give to any stock when its total returns exceed my initial capital outlay. 

The stock that achieved home run status is NextEra Energy, Inc (NEE), an electric power company with operations in the United States and Canada.

Today's home run stock took only two years and one month to achieve home run status! I first opened a position in December 2018, and added more shares in February 2019 at a higher cost basis. 

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 34% (17% 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 6% (1% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 78% (19% annualized)
  • Home run #7: Microsoft (MSFT) — up 383% (74% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 112% (32% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 52% (24% annualized)
  • Home run #11: AbbView (ABBV) — up 106% (23% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 33% (15% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 42% (54% annualized)
  • Home run #14: Netflix (NFLX) — up 148% (52% annualized)
  • Home run #15: Intel (INTC) — up 190% (27% annualized)
  • Home run #16: Valero Energy (VLO) — up 14% (3% annualized)
  • Home run #17: Aflac (AFL) — up 112% (21% annualized)
  • Home run #18: Apple (AAPL) — up 411% (81% annualized)
  • Home run #19: Xcel Energy (XEL) — up 26% (19% annualized)
  • Home run #20: (AMZN) — up 151% (53% annualized)
  • Home run #21: (CRM) — up 56% (25% annualized)
  • Home run #22: Procter & Gamble (PG) — up 99% (14% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM) — up 177% (62% annualized)
  • Home run #24: Pinterest, Inc (PINS)— up 175% (451% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD)— up 86% (41% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM)— up 130% (79% annualized)
  • Home run #27: Cummins Inc (CMI)— up 106% (26% annualized)
  • Home run #28: NextEra Energy (NEE)— up 107% (42% 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-five 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 #29

      My 29th home run stock is BlackRock, Inc (BLK), a publicly owned investment manager that provides its services to institutional, intermediary, and individual investors.

      I first opened a position in BLK on 19 December 2018, paying $385.90 per share and getting an initial yield on cost (YoC) of 3.24%. Today, BLK yields only 1.86%, and my average YoC has increased to a respectable 3.67%. Below is a summary of my BLK transactions showing the cost basis and initial yield on cost (YoC) of each transaction:

      Here is a price chart of BLK indicating my trades:

      Source: Trading View

      I'm very happy with the timing of my buys and with BLK's performance over the last two years! 

      Home Run Contenders

      There are three stocks in my portfolio that are approaching home run status: 
      1. Texas Instruments Incorporated (TXN) -- total returns of 96%
      2. T. Rowe Price Group, Inc (TROW) -- total returns of 95%
      3. Lowe's Companies, Inc (LOW) -- total returns of 90%

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

      Concluding Remarks

      With total returns exceeding my initial investment, BLK is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes my 30th home run!

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