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Thursday, October 21, 2021

Home Run Number 39

Less than six weeks ago, I announced DivGro's 38th Home Run stock, Accenture plc (ACN). In that article, I mentioned that Broadcom Inc (AVGO) was the closest to achieving home run status, with total returns of 94% (or 41% on an annualized basis). 

Today, I'm happy to announce my DivGro's 39th Home Run stock!  

As a dividend growth investor with a long-term investment horizon, I have a reasonable expectation that the majority of my DivGro stocks will someday reach home run status. The longer I'm invested in a stock, the higher is the likelihood that it will double my original capital outlay!

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 84% (30% 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 14% (5% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 218% (32% annualized)
  • Home run #7: Microsoft (MSFT) — up 585% (99% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 86% (37% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 73% (25% annualized)
  • Home run #11: AbbView (ABBV) — up 108% (20% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 27% (15% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 88% (57% annualized)
  • Home run #14: Netflix (NFLX) — up 314% (72% annualized)
  • Home run #15: Intel (INTC) — up 208% (24% annualized)
  • Home run #16: Valero Energy (VLO) — up 54% (11% annualized)
  • Home run #17: Aflac (AFL) — up 157% (26% annualized)
  • Home run #18: Apple (AAPL) — up 567% (104% annualized)
  • Home run #19: Xcel Energy (XEL) — up 19% (13% annualized)
  • Home run #20: Amazon.com (AMZN) — up 242% (56% annualized)
  • Home run #21: Salesforce.com (CRM) — up 95% (37% annualized)
  • Home run #22: Procter & Gamble (PG) — up 107% (14% annualized)
  • Home run #23: Taiwan Semiconductor Manufacturing (TSM closed for 47% gain (40% annualized)
  • Home run #24: Pinterest, Inc (PINS closed for 161% gain (176% annualized)
  • Home run #25: Air Products and Chemicals, Inc (APD) — up 95% (33% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM) — up 30% (21% annualized)
  • Home run #27: Cummins Inc (CMI) — up 127% (22% annualized)
  • Home run #28: NextEra Energy (NEE) — up 117% (35% annualized)
  • Home run #29: BlackRock, Inc (BLK) — up 138% (50% annualized)
  • Home run #30: T. Rowe Price Group, Inc (TROW up 203% (36% annualized)
  • Home run #31: Texas Instruments Incorporated (TXN up 129% (35% annualized)
  • Home run #32: Alphabet Inc (GOOG) — up 205% (47% annualized)
  • Home run #33: The Walt Disney Company (DIS closed for 88% gain (15% annualized)
  • Home run #34: Lowe's Companies, Inc (LOW up 152% (43% annualized)
  • Home run #35: FedEx Corporation (FDX up 57% (29% annualized)
  • Home run #36: NIKE, Inc (NKE up 96% (43% annualized)
  • Home run #37: Starbucks Corporation (NKE)  up 88% (26% annualized)
  • Home run #38: Accenture plc (ACN),  up 101% (41% 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 MSFT and AAPL top the list, followed by two of my growth stocks, NFLX, and AMZN.

      Home Run #39

      My 39th home run stock is Broadcom Inc (AVGO), a company that designs, develops, and supplies a range of semiconductor devices for use in various applications, including enterprise and data center networking, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. 

      Below is a summary of my AVGO transaction:

      Here is a price chart of AVGO indicating my buy trades and the point where the stock reached home run status:
      Source: Trading View

      Note that AVGO took quite a beating in late February/early March 2020, dropping well below the cost basis of either of my buy transactions, but the stock has recovered and performed spectacularly since then!

      Overall, my total return from AVGO is 41% on an annualized basis!

      Home Run Contenders

      The non-home run stock closest to reaching home run status is:
      • The Home Depot (HD) -- up 84% (37% annualized)

      Concluding Remarks

      With total returns exceeding my initial investment, AVGO is the latest home run stock in my DivGro portfolio. The closest contender for home run status is HD with total returns of 84%.

      Thanks for reading!
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      1. Congrats on homerun stock number #39! If I'm reading your chart correctly, with not losses, it looks like you've scored runs with each at bat! Batting 1000% is awesome. Wish you continued success...you're killing it! AFFJ

        1. Not quite 1000! However, it certainly is a fun journey. Invest in high-quality dividend growth stocks at fair or discounted valuations, and wait. Eventually, they'll turn into home runs. Some faster than others, but who cares!


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