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Wednesday, November 17, 2021

Home Run Number 41

Earlier today, I reported DivGro's 40th Home Run stock, The Home Depot (HD), with total returns of 43% on an annualized basis. That's a remarkable performance!

In that article, I indicated that two stocks achieved home run status. The second stock achieved home run status less than one hour after HD did. I'm very pleased with its performance, too! In fact, with total returns of 44% on an annualized basis, this stock became a home run stock slightly faster than HD!

I'm covering that achievement in this article. 

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 76% (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 6% (2% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 232% (34% annualized)
  • Home run #7: Microsoft (MSFT) — up 653% (109% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 92% (39% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 82% (27% annualized)
  • Home run #11: AbbView (ABBV) — up 121% (22% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 17% (9% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 82% (51% annualized)
  • Home run #14: Netflix (NFLX) — up 355% (80% annualized)
  • Home run #15: Intel (INTC) — up 185% (21% annualized)
  • Home run #16: Valero Energy (VLO) — up 49% (10% annualized)
  • Home run #17: Aflac (AFL) — up 161% (26% annualized)
  • Home run #18: Apple (AAPL) — up 574% (104% annualized)
  • Home run #19: Xcel Energy (XEL) — up 17% (11% annualized)
  • Home run #20: (AMZN) — up 255% (58% annualized)
  • Home run #21: (CRM) — up 107% (40% annualized)
  • Home run #22: Procter & Gamble (PG) — up 115% (15% 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 100% (34% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM) — up 78% (53% annualized)
  • Home run #27: Cummins Inc (CMI) — up 121% (21% annualized)
  • Home run #28: NextEra Energy (NEE) — up 124% (36% annualized)
  • Home run #29: BlackRock, Inc (BLK) — up 150% (52% annualized)
  • Home run #30: T. Rowe Price Group, Inc (TROW up 217% (38% annualized)
  • Home run #31: Texas Instruments Incorporated (TXN up 117% (31% annualized)
  • Home run #32: Alphabet Inc (GOOG) — up 219% (50% annualized)
  • Home run #33: The Walt Disney Company (DIS closed for 88% gain (15% annualized)
  • Home run #34: Lowe's Companies, Inc (LOW up 173% (48% annualized)
  • Home run #35: FedEx Corporation (FDX up 72% (35% annualized)
  • Home run #36: NIKE, Inc (NKE up 112% (49% annualized)
  • Home run #37: Starbucks Corporation (SBUX)  up 85% (24% annualized)
  • Home run #38: Accenture plc (ACN up 115% (46% annualized)
  • Home run #39: Broadcom Inc (AVGO up 121% (49% annualized)
  • Home run #40: The Home Depot (HD up 101% (43% annualized)

      Several stocks in the list above show total returns of less than 100%. My rule of thumb is that once a position had reached home run status, it will retain the status even if the total returns should dip below 100%. That can happen if the share price drops or if I buy additional shares at a higher cost basis.

      Note that I've reopened positions in DLR and NOC after closing my original positions, both home runs. Repeat positions like DLR and NOC will have to earn home run status all over 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-four of my existing positions are home run stocks. With annualized total returns of 109% and 104%, respectively, MSFT and AAPL are by far my most successful investments! I wonder if either of these positions will become my first Ten Bagger or if another stock will beat them to the punch?

      Home Run #41

      My 41st home run stock is Costco Wholesale Corporation (COST). Founded in 1976 and based in Issaquah, Washington, COST operates more than 700 membership warehouses in the United States and internationally. The company offers branded and private-label products in a range of merchandise categories. COST also operates gas stations, pharmacies, food courts, optical dispensing centers, photo processing centers, and hearing-aid centers; and engages in the travel business.

      I opened my COST position in August of 2019 and the stock took 837 days to achieve home run status:

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

      Source: Trading View

      Overall, the total return from COST is 43% on an annualized basis! I'm especially impressed with COST's performance since March 2021! 

      Home Run Contenders

      Unfortunately, it appears that I'd have to wait quite a while for another DivGro stock to achieve home run status. There are no positions in my portfolio with total returns above 90%. CVS Health Corporation (CVS) is the top-performing non-home-run stock, with total returns of 83% (31% annualized). The stock appears to have momentum working in its favor, so perhaps I won't have to wait too long:

      To achieve home run status (without accounting for further dividend payments), CVS would have to trade above $102.16 per share. If CVS maintains its current momentum, I think it could become a home run stock in April 2022. 

      Here is a list of other contenders with total returns of at least 70%:

      I'm happy to see one of my closed-end funds, AllianzGI Equity & Convertible Income Fund (NIE) on the list! The fund's relatively high distribution yield is the main contributor to total returns and I note that its payback just topped 25%!

      Concluding Remarks

      With total returns exceeding my initial investment, COST is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes Home Run Number 42!

      Thanks for reading!
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