Wednesday, February 10, 2021

Home Run Number 33

Thanks to record-setting market highs on Monday, I have two new home runs to report! Technically, I don't know which of these stocks reached home run status first, so I'm simply announcing them in alphabetical order by ticker. 

The home run I'm reporting first is by a company that's near and dear to my heart, as it owns the company I work for and that puts food on our table, so to speak. 

Unfortunately, the company suspended its dividend due to the bottom-line impact of the COVID-19 pandemic. As a consequence, I halved my position in January with the view of reinvesting the proceeds in a dividend growth stock. My decision to keep half of my position for its growth prospects was justified, as today's announcement shows!
I first invested in this stock in December 2014 and added more shares in 2015 and 2016. The stock has delivered annualized returns of 18%, which is a respectable performance!

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 40% (19% 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 11% (3% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 87% (21% annualized)
  • Home run #7: Microsoft (MSFT) — up 446% (85% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 97% (27% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 53% (23% annualized)
  • Home run #11: AbbView (ABBV) — up 97% (21% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 32% (14% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 45% (52% annualized)
  • Home run #14: Netflix (NFLX) — up 176% (60% annualized)
  • Home run #15: Intel (INTC) — up 195% (27% annualized)
  • Home run #16: Valero Energy (VLO) — up 24% (6% annualized)
  • Home run #17: Aflac (AFL) — up 112% (21% annualized)
  • Home run #18: Apple (AAPL) — up 439% (85% annualized)
  • Home run #19: Xcel Energy (XEL) — up 23% (16% annualized)
  • Home run #20: (AMZN) — up 166% (56% annualized)
  • Home run #21: (CRM) — up 73% (32% annualized)
  • Home run #22: Procter & Gamble (PG) — up 87% (13% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM) — up 210% (72% annualized)
  • Home run #24: Pinterest, Inc (PINS) — up 188% (400% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD) — up 66% (30% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM) — up 119% (69% annualized)
  • Home run #27: Cummins Inc (CMI) — up 105% (26% annualized)
  • Home run #28: NextEra Energy (NEE) — up 113% (43% annualized)
  • Home run #29: BlackRock, Inc (BLK) — up 89% (43% annualized)
  • Home run #30: T. Rowe Price Group, Inc (TROW up 103% (31% annualized)
  • Home run #31: Texas Instruments Incorporated (TXN  up 99% (33% annualized)
  • Home run #32: Alphabet Inc (GOOG) — up 102% (34% 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 total profit/loss%:

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

      Home Run #33

      My 33rd home run stock is The Walt Disney Company (DIS), a diversified international family entertainment company based in Burbank, California. 

      I first opened a position in DIS on 9 December 2014, paying $92.88 per share for 50 shares. I've added another 150 shares on three other occasions but sold 100 shares in January 2021 after DIS suspended its dividend. 

      Below is a summary of my DIS transactions related to my current position of 100 shares:

      Here is a price chart of DIS indicating my trades:

      Source: Trading View

      The timing of my buys could have been better, as the stock essentially traded in a channel for a few years before breaking out in early 2019. As a consequence, DIS's annualized returns are not as impressive as other home run stocks, though 18% still is respectable!

      Home Run Contenders

      There are no non-home run stocks in my portfolio with total returns above 80%.

      Concluding Remarks

      With total returns exceeding my initial investment, DIS is the latest home run stock in my DivGro portfolio. I'll report my 34th home run shortly!

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      1. Trying to pass up Barry Bonds? Congrats on another home run.

      2. Wow, you're on quite the home run streak lately!

        1. Yes, one more tomorrow and that will be it for a while!


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