Thursday, February 4, 2021

Home Run Number 31

The fun continues! (Though it appears it'll be a while before I get to do this again...)

On 28 January, I reported Home Run Number 30, and here I'm back announcing another home run stock! 

I like celebrating these milestones because it somewhat validates my original investment thesis! The stock I selected and invested in has produced total returns that exceeded my initial outlay of capital!

Today's home run stock took just more than three years to achieve home run status. I first invested in September 2017 and added shares on two more occasions. I'm happy to note that it has produced annualized returns of about 31%! 

 

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 32% (15% 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 81% (20% annualized)
  • Home run #7: Microsoft (MSFT) — up 436% (84% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 104% (29% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 50% (23% annualized)
  • Home run #11: AbbView (ABBV) — up 94% (20% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 30% (14% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 41% (49% annualized)
  • Home run #14: Netflix (NFLX) — up 170% (59% annualized)
  • Home run #15: Intel (INTC) — up 191% (27% annualized)
  • Home run #16: Valero Energy (VLO) — up 13% (3% annualized)
  • Home run #17: Aflac (AFL) — up 113% (21% annualized)
  • Home run #18: Apple (AAPL) — up 430% (84% annualized)
  • Home run #19: Xcel Energy (XEL) — up 27% (19% annualized)
  • Home run #20: Amazon.com (AMZN) — up 169% (58% annualized)
  • Home run #21: Salesforce.com (CRM) — up 70% (31% annualized)
  • Home run #22: Procter & Gamble (PG) — up 88% (13% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM) — up 196% (68% annualized)
  • Home run #24: Pinterest, Inc (PINS) — up 168% (372% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD) — up 80% (37% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM) — up 144% (84% annualized)
  • Home run #27: Cummins Inc (CMI) — up 100% (25% annualized)
  • Home run #28: NextEra Energy (NEE) — up 111% (42% annualized)
  • Home run #29: BlackRock, Inc (BLK) — up 91% (44% annualized)
  • Home run #30: T. Rowe Price Group, Inc (TROW up 96% (30% 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-seven of my existing positions are home run stocks. The Information Technology stocks MSFTAAPL, TSM, and INTC top the list based on annualized returns. I'm also happy that some of my growth stocks, AMZN, NFLX, and PINS are near the top of the list as well. 

      Home Run #31


      My 31st home run stock is Texas Instruments Incorporated (TXN), a company that designs, manufactures, and sells semiconductors to electronics designers and manufacturers globally. 

      I first opened a position in TXN on 26 September 2017, paying $87.71 per share and getting an initial yield on cost (YoC) of 2.83%. Since then, I've added shares on two other occasions. Today, TXN yields only 2.37%, and my average YoC has increased to a respectable 4.42%. Below is a summary of my TXN transactions showing the cost basis and initial yield on cost of each transaction:


      Here is a price chart of TXN indicating my trades:

      Source: Trading View

      I'm happy with the timing of my buys and with TXN's performance!

      Home Run Contenders


      There are four stocks in my portfolio with total returns above 80%: 
      1. Lowe's Companies, Inc (LOW) -- total returns of 86%
      2. Alphabet Inc (GOOG) -- total returns of 85%
      3. The Walt Disney Company (DIS) -- total returns of 85%
      4. Broadcom Inc (AVGO) -- total returns of 83%
      LOW has the lead and we'll see if and when it achieves home run status! 

      Concluding Remarks


      With total returns exceeding my initial investment, TXN is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes my 32nd home run!

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