Wednesday, July 14, 2021

Home Run Number 36

After just more than two months, I'm happy to announce another home run, DivGro's 36th!

The stock that just doubled my original capital outlay has delivered annualized returns of 51% over just less than two years of ownership. I'd be very happy if all my investments returned even half of that rate on an annualized basis!

I notice that another stock in my portfolio is on the brink of attaining home run status, so expect another one of these posts soon!

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 67% (26% 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 18% (5% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 205% (32% annualized)
  • Home run #7: Microsoft (MSFT) — up 531% (94% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 77% (38% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 70% (26% annualized)
  • Home run #11: AbbView (ABBV) — up 120% (24% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 27% (18% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 72% (57% annualized)
  • Home run #14: Netflix (NFLX) — up 172% (51% annualized)
  • Home run #15: Intel (INTC) — up 211% (25% annualized)
  • Home run #16: Valero Energy (VLO) — up 32% (7% annualized)
  • Home run #17: Aflac (AFL) — up 140% (24% annualized)
  • Home run #18: Apple (AAPL) — up 565% (109% annualized)
  • Home run #19: Xcel Energy (XEL) — up 22% (18% annualized)
  • Home run #20: (AMZN) — up 194% (58% annualized)
  • Home run #21: (CRM) — up 62% (28% annualized)
  • Home run #22: Procter & Gamble (PG) — up 101% (14% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM) — up 55% (48% annualized)
  • Home run #24: Pinterest, Inc (PINS) — up 159% (178% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD) — up 90% (35% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM) — up 40% (35% annualized)
  • Home run #27: Cummins Inc (CMI) — up 121% (22% annualized)
  • Home run #28: NextEra Energy (NEE) — up 93% (30% annualized)
  • Home run #29: BlackRock, Inc (BLK) — up 130% (32% annualized)
  • Home run #30: T. Rowe Price Group, Inc (TROW up 150% (41% annualized)
  • Home run #31: Texas Instruments Incorporated (TXN up 121% (35% annualized)
  • Home run #32: Alphabet Inc (GOOG) — up 155% (45% annualized)
  • Home run #33: The Walt Disney Company (DIS up 95% (16% annualized)
  • Home run #34: Lowe's Companies, Inc (LOW up 116% (36% annualized)
  • Home run #35: FedEx Corporation (FDX up 90% (47% 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%:

      Thirty-two of my existing positions are home run stocks. The Information Technology stocks AAPL, MSFT, and INTC top the list based on annualized returns. I'm also happy that some of my growth stocks, AMZN, NFLX, PINS, and GOOG are in the top 10!

      Home Run #36

      My 36th home run stock is NIKE, Inc (NKE), a Beaverton, Oregon-based company engaged in the design, development, marketing, and selling of athletic footwear, apparel, equipment, and accessories. 

      I opened my position in NKE on 2 August 2019, paying $81.89 per share for 15 shares. I haven't added any shares since my opening transaction, as NKE always seemed to be priced just a little more than I would've wanted to pay!

      Below is a summary of my NKE transaction:

      Here is a price chart of NKE indicating my buy trade and the point where the stock reached home run status:

      Source: Trading View

      Like many stocks, NKE took a beating in late February/early March 2020. Fortunately, the stock recovered nicely, even spectacularly! Overall, my total return from NKE is 51% on an annualized basis!

      Home Run Contenders

      There is only one non-home run stock in my portfolio with a total return of 90% or above:
      • Starbucks Corporation (SBUX) -- up 97% (31% annualized)

      Concluding Remarks

      With a total return exceeding my initial investment, NKE is the latest home run stock in my DivGro portfolio. The closest contender for home run status is SBUX with total returns of 97%.

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      1. Congrats on another home run. Nike is also a homerun for me although I wish I hadn't gotten cute and sold some covered calls especially after the run that it's had the last few years. I've got a few in my main taxable account that are pushing up on doubles including JNJ and HSY. It's great to see the progress you've made with 36 home runs now!

        1. Thanks, Passive Income Pursuit -- I appreciate your comment! Yeah, those covered calls can be tricky on growth stocks. I've made similar mistakes on $MSFT and $TSM. It's exciting to count home runs, and the longer I stay invested in a company, the greater the chance becomes that it would turn into a home run.


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