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Thursday, June 9, 2022

Home Run Number 44

Whenever a stock in my portfolio doubles my original capital outlay in total returns, I label it a Home Run stock. I think the Home Run label sounds better than 2-Bagger or Doubler.

It's fun writing these milestone articles! Doing so reminds me why I became a dividend growth investor!

In March, I announced my 43rd Home Run stock, Archer-Daniels-Midland (ADM). In the article, I identified three likely candidates for my next Home Run stock, but another stock beat them to the punch!

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 104% (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 29% (10% annualized)
  • Home run #5: Reynolds American (RAI) — closed for 180% gain (53% annualized)
  • Home run #6: Main Street Capital (MAIN) — up 200% (27% annualized)
  • Home run #7: Microsoft (MSFT) — up 507% (77% annualized)
  • Home run #8: UnitedHealth Group (UNH) — up 112% (38% annualized)
  • Home run #9: Northrop Grumman (NOC) — closed for 132% gain (46% annualized)
  • Home run #10: McDonald's (MCD) — up 79% (22% annualized)
  • Home run #11: AbbView (ABBV) — up 184% (33% annualized)
  • Home run #12: Lockheed Martin (LMT) — up 50% (21% annualized)
  • Home run #13: Raytheon Technologies (RTX) — up 62% (47% annualized)
  • Home run #14: Netflix (NFLX) — up 30% (6% annualized)
  • Home run #15: Intel (INTC) — up 142% (15% annualized)
  • Home run #16: Valero Energy (VLO) — up 146% (39% annualized)
  • Home run #17: Aflac (AFL) — up 58% (24% annualized)
  • Home run #18: Apple (AAPL) — up 554% (91% annualized)
  • Home run #19: Xcel Energy (XEL) — up 44% (17% annualized)
  • Home run #20: Amazon.com (AMZN) — up 138% (28% annualized)
  • Home run #21: Salesforce.com (CRM) — up 28% (9% annualized)
  • Home run #22: Procter & Gamble (PG) — up 17% (10% 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 74% (21% annualized)
  • Home run #26: QUALCOMM Incorporated (QCOM) — up 38% (23% annualized)
  • Home run #27: Cummins Inc (CMI) — up 105% (17% annualized)
  • Home run #28: NextEra Energy (NEE) — up 105% (27% annualized)
  • Home run #29: BlackRock, Inc (BLK) — up 81% (24% annualized)
  • Home run #30: T. Rowe Price Group, Inc (TROW) — up 96% (15% annualized)
  • Home run #31: Texas Instruments Incorporated (TXN) — up 96% (22% annualized)
  • Home run #32: Alphabet Inc (GOOG) — up 150% (30% annualized)
  • Home run #33: The Walt Disney Company (DIS) — closed for 88% gain (15% annualized)
  • Home run #34: Lowe's Companies, Inc (LOW) — up 124% (30% annualized)
  • Home run #35: FedEx Corporation (FDX) — up 52% (20% annualized)
  • Home run #36: NIKE, Inc (NKE) — up 50% (18% annualized)
  • Home run #37: Starbucks Corporation (SBUX) — up 37% (9% annualized)
  • Home run #38: Accenture plc (ACN) — up 77% (25% annualized)
  • Home run #39: Broadcom Inc (AVGO) — up 124% (41% annualized)
  • Home run #40: The Home Depot (HD) — up 59% (20% annualized)
  • Home run #41: Costco Wholesale Corporation (COST) — up 84% (29% annualized)
  • Home run #42: CVS Health Corporation (CVS) — up 92% (29% annualized)
  • Home run #43: Archer-Daniels-Midland (ADM) — up 115% (39% annualized)

      Several stocks in the list above show total returns of less than 100%. 

      My rule of thumb is that once a position reaches Home Run status, it retains 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-seven of my existing positions are home run stocks. With annualized total returns of 91% and 78%, respectively, AAPL and MST remain my most successful investments! 

      Home Run #44


      DivGro's 44td home run stock is Chevron (CVX), the fifth-largest integrated energy in the world. 

      Founded in 1984 and based in San Ramon, California, CVX is a multinational energy corporation involved in all aspects of the oil and gas industries, including exploration and production; refining, marketing, and transport; chemicals manufacturing and sales; and power generation. CVXhas operations in about 180 countries.

      I opened my latest CVX position in February of 2021 and added more shares in September of the same year.  The stock took 483 days to achieve home run status:


      Here is a price chart of CVX indicating my trades and the point where the stock reached home run status:

      Source: Trading View

      CVX performed well since September 2021, and the stock's total return of 89% on an annualized basis is truly impressive! 

      Home Run Contenders


      Here are the nearest Home Run contenders based on total annualized returns:
      • Chubb (CB) — up 79% (26% annualized)
      • Coca-Cola (KO) — up 76% (12% annualized)
      • Anthem (ANTM) — up 74% (26% annualized)
      It would be interesting to see which of these stocks would achieve Home Run status first!




      Source: Yahoo! Finance


      Concluding Remarks


      With total returns exceeding my initial investment, CVX is the latest home run stock in my DivGro portfolio. I'm looking forward to seeing which stock becomes Home Run Number 45!
      Thanks for reading!
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      2 comments :

      1. Passive Income PursuitJune 13, 2022 at 2:26 AM

        Congrats Ferdi on another home run. That was some really great timing on the CVX purchases. I had enough O&G exposure heading into COVID and I also work in the industry so I didn't really want to increase my weighting even though O&G and energy was really beaten down. Foolish probably, but I still think is was the right call.

        ReplyDelete
        Replies
        1. FerdiS, DivGroJune 13, 2022 at 9:09 AM

          Thanks, I appreciate your comment! Yeah, I trimmed back on my Energy sector stocks a few years ago and thought it would be a good idea to jump back in a bit, which turned out to be well-timed. The few Energy sector stocks I do own helped my portfolio perform reasonably well this year, at least compared to the S&P 500... which now is trading down 20% (bear market territory).

          Delete

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