Home Run Number 42

I call any stock in my portfolio that has doubled my original capital outlay in total returns, a Home Run. It's a fun milestone to celebrate and I enjoy writing these articles! 

Last month, I announced Costco Wholesale Corporation (COST) as DivGro's 41^st Home Run stock. Despite having a very low forward yield of only 0.57%, COST has delivered total returns of 43% on an annualized basis. That's a remarkable performance!

Remarkably, my latest Home Run stock has delivered total returns of 39% on an annualized basis, despite having frozen its dividend a few years ago! 

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 85% (29% 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 20% (8% annualized)
• Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
• Home run #6: Main Street Capital (MAIN) — up 219% (32% annualized)
• Home run #7: Microsoft (MSFT) — up 627% (103% annualized)
• Home run #8: UnitedHealth Group (UNH) — up 110% (44% annualized)
• Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
• Home run #10: McDonald's (MCD) — up 91% (29% annualized)
• Home run #11: AbbView (ABBV) — up 152% (30% annualized)
• Home run #12: Lockheed Martin (LMT) — up 19% (10% annualized)
• Home run #13: Raytheon Technologies (RTX) — up 36% (43% annualized)
• Home run #14: Netflix (NFLX) — up 239% (53% annualized)
• Home run #15: Intel (INTC) — up 186% (21% annualized)
• Home run #16: Valero Energy (VLO) — up 26% (8% annualized)
• Home run #17: Aflac (AFL) — up 56% (28% annualized)
• Home run #18: Apple (AAPL) — up 673% (120% annualized)
• Home run #19: Xcel Energy (XEL) — up 36% (18% annualized)
• Home run #20: Amazon.com (AMZN) — up 239% (53% annualized)
• Home run #21: Salesforce.com (CRM) — up 71% (26% annualized)
• Home run #22: Procter & Gamble (PG) — up 28% (23% 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 103% (34% annualized)
• Home run #26: QUALCOMM Incorporated (QCOM) — up 76% (52% annualized)
• Home run #27: Cummins Inc (CMI) — up 107% (18% annualized)
• Home run #28: NextEra Energy (NEE) — up 138% (39% annualized)
• Home run #29: BlackRock, Inc (BLK) — up 144% (49% annualized)
• Home run #30: T. Rowe Price Group, Inc (TROW) — up 186% (32% annualized)
• Home run #31: Texas Instruments Incorporated (TXN) — up 120% (31% annualized)
• Home run #32: Alphabet Inc (GOOG) — up 211% (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 184% (50% annualized)
• Home run #35: FedEx Corporation (FDX) — up 65% (30% annualized)
• Home run #36: NIKE, Inc (NKE) — up 104% (44% annualized)
• Home run #37: Starbucks Corporation (SBUX) — up 89% (25% annualized)
• Home run #38: Accenture plc (ACN) — up 133% (51% annualized)
• Home run #39: Broadcom Inc (AVGO) — up 141% (55% annualized)
• Home run #40: The Home Depot (HD) — up 105% (43% annualized)
• Home run #41: Costco Wholesale Corporation (COST) — up 112% (47% 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-five of my existing positions are home run stocks. With annualized total returns of 120% and 103%, respectively, AAPL and MST are by far my most successful investments! I wonder which of these positions will become my first Ten Bagger.

Home Run #42

My 42^nd home run stock is CVS Health Corporation (CVS), a company founded in 1963 and headquartered in Woonsocket, Rhode Island. CVS provides health care and pharmacy services in the United States. 

I opened my CVS position in April of 2019 and the stock took about 950 days to achieve home run status:

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

Source: Trading View

I'm particularly impressed with CVS's performance since March 2021, and the stock's total return of 39% on an annualized basis! Happily, CVS recently announced that it will increase its dividend by 10%, the first raise in several years!

Source: Simply Wall St

Home Run Contenders

Three positions in my portfolio have total returns above 80%:

• McDonald's Corporation (MCD) — up 90% (29% annualized)
• Oracle Corporation (ORCL) — up 86% (44% annualized)
• Pfizer Inc (PFE) — up 85% (24% annualized)

MCD is the leading contender with total returns of 90%, but PFE appears to have the momentum to beat MCD (and ORCL) to the punch. We'll see how it goes!

Source: Yahoo! Finance

Concluding Remarks

With total returns exceeding my initial investment, CVS is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes Home Run Number 43!

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