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Pandemic Portfolio: Update #16
This is an update to a series. See Starting a Portfolio from Scratch to learn how it started.
A New Contender Enters…
As the Pandemic Portfolio comes up on its one-year anniversary, I’ve re-evaluated the speed at which I’m able to put money to work in this portfolio (e.g. painfully slowly), and I’ve decided to add a new position to the mix.
Just like before, this one carries a dividend and will likely outperform both in and out of potential recessions – American Telephone & Telegraph or AT&T (T) for the kiddos out there (of which I am one when it comes to this particular reference…).
Read on to hear more about why I picked AT&T as well as for updates on each of the different positions in this April 2021 entry #16 of the Pandemic Portfolio.
Change since Last Update: +2.942%
Holdings: 45.37% | Cash: 54.63%
1st Buy 4/29/2021 @ $31.25
Current Per-Share: $31.25
1st Buy 7/21/2020 @ $167.24
Current Per-Share: $152.65
1st Buy 5/13/2020 @ $132.97
Current Per-Share: $129.00
1st Buy 10/28/2020 @ $26.26
Current Per-Share: $22.65
1st Buy 5/12/2020 @ $143.35
Current Per-Share: $129.45
1st Buy 6/12/2020 @ $282.41
Current Per-Share: $305.60
1st Buy 5/12/2020 @ $306.88
Current Per-Share: $330.36
1st Buy 5/12/2020 @ $180.74
Current Per-Share: $199.85
1st Buy 1/14/2021 @ $114.78
Current Per-Share: $112.31
Target Position Size
Click image for an enlarged version.
Moves Since Last Update
AT&T (T): *New Position*
Current Price: $31.41
Per-Share Cost: $31.25 *New Position*
Allocation: 2.963%* *New Position*
Next Buy Target: $30.10
This marks AT&T’s (T) first appearance in the public portfolio. After reporting a stellar quarter in late April, I decided to add this hated stock due to its excellent 6%+ annual dividend and the fact that it’s not even remotely back to its pre-Covid highs. In fact, it’s closer to the bottom than it is to regaining its standing making it an undervalued company in a world of peak valuations.
You’re likely familiar with AT&T from its cell-phone service (which it operates under the names AT&T and Cricket) and you might even be aware of its ownership of DirecTV, however, AT&T also owns Time-Warner which includes the HBO and Cinemax channels.
This makes AT&T kind of a mini-Disney (DIS) which I hold in the Investments in Play portfolio. With a 5G rollout on the horizon and what appears to be a success in streaming with its new HBO Max service, I really like the diversification in this company. Plus, since it seems to just be starting a turnaround when the rest of the market is overvalued, which is why I’ve added this juicy dividend-yielder to the Pandemic Portfolio with a starting per-share cost of $31.25 on Thursday, April 29, 2021, giving the position a 6.656% annual dividend yield. From here, my next buy target to add more is $30.10.
T closed this update at $31.41, up +0.51% from where I opened my position.
Barrick Gold (GOLD): Strategy Update
Current Price: $21.25
Per-Share Cost: $22.65 (Unchanged from last update)
Allocation: 6.0131%* (+0.192% from last update)
Next Buy Target: $19.85
The precious yellow metal bounced from its lows, however, it started to sell off as we neared the end of April. Confusion from the bond market caused many goldbugs to become hesitant of gold’s price increases which, in turn, causes the goldminers, in this case Barrick Gold (GOLD), to retreat. So, this one’s in a holding pattern until it sells off more.
Costco (COST): Strategy Update
Current Price: $372.09
Per-Share Cost: $330.36 (Unchanged from last update)
Allocation: 7.047%* (+0.377% from last update)
Next Buy Target: $307.75
Costco (COST) saw quite a bounce since it sold off earlier this year, however, it seems to be currently trading in a range like many of the other positions in the portfolio. Accordingly, I intend to take a small amount of profits if COST continues its upward trajectory in hopes to use any funds I lock in to buy more at much lower levels.
Crown Castle (CCI): Taking Profits & Dividends
Current Price: $189.06
Per-Share Cost: $152.65 (-3.386% from last update)
Allocation: 6.360%* (-0.425% from last update)
Next Buy Target: $151.45
Crown Castle (CCI) paid out its $1.33 quarterly dividend on April 1, an annual yield of 3.076% at its $172.96 closing price. After reinvesting the dividend, the per-share cost of my position dropped -0.766% from $158.00 to $156.79, a decent drop.
Over the last month, CCI has had an incredible run leading me to want to take a small amount of the position off the table to lock in gains and lower my per-share cost, so on Thursday, April 29, I sold near all-time highs at $186.37 to further reduce my per-share cost -2.64% (for a total of -3.386%) from $156.79 down to $152.65. The sale locked in +23.80% in gains on shares I bought less than two months ago for $150.54 on March 3, 2021.
From here, I have no plans to take additional profits, but having done so now gives me the opportunity to buy back anywhere beneath where I sold to lock in a discount on the shares I sold. That being said, my next buying price target is $151.45, near the low of the cycles CCI seems to be traveling.
CCI closed this update at $189.06, up +1.443% from where I took profits.
Digital Realty Trust (DLR): Taking Profits & Dividends
Current Price: $154.31
Per-Share Cost: $129.45 (-3.423% from last update)
Allocation: 6.703%* (-1.006% from last update)
Next Buy Target: $130.50
Digital Realty Trust (DLR) paid out its $1.16 quarterly dividend on April 1, an annual yield of 3.281% at its $141.43 closing price. After reinvesting the dividend, the per-share cost of my position dropped -0.813% from $134.00 to $132.91, not bad for a 3-month holding period.
Over the course of April, I started paying close attention to the movement of DLR’s price. Digital Realty Trust (DLR), like many of the positions in the Pandemic Portfolio, has been trading in a distinct range with it currently bumping against the top of its range around $150.00.
Given that DLR was the biggest holding in my portfolio and that the market felt quite toppy, I took the opportunity to take profits on Thursday, April 29, selling shares at $148.85 each which I had bought for $128.06 less than two months ago on March 3 and locking in +13.97% in gains.
More importantly, the sale reduced my per-share cost an additional -2.603% from $132.91 to $129.45, a total reduction of -3.423% from the last update. From here, I have no additional sell targets, but I will buy slightly above my new per-share cost with a buy target at $130.48, a point DLR regularly pulls back to.
DLR closed this update at $154.31, up +3.668% from where I took profits.
Microsoft (MSFT): Strategy Update
Current Price: $252.18
Per-Share Cost: $199.85 (Unchanged from last update)
Allocation: 5.041%* (+0.359% from last update)
Next Buy Target: $241.25
Microsoft (MSFT) reported an absolutely stellar quarterly earnings report, and instead of rocketing higher, it sold off. Accordingly, I’ve raised my price target to buy more at $241.25 if Mr. Softy continues its downward slide. This one has been a slow-moving but unyielding juggernaut that refuses to give up, and I have no problem buying up my per-share cost to get me some more of that action.
Pepsico (PEP): Dividend Reinvestment
Current Price: $144.16
Per-Share Cost: $129.00 (-0.620% from last update)
Allocation: 4.834%* (-0.058% from last update)
Next Buy Target: $128.80
Pepsico (PEP) paid out its $1.02 quarterly dividend on April 1, an annual yield of 2.894% at its $141.43 closing price. After reinvesting the dividend, the per-share cost of my position dropped -0.620% from $129.80 to $129.00, not bad!
UnitedHealth (UNH): Strategy Update
Current Price: $398.80
Per-Share Cost: $305.60 (Unchanged from last update)
Allocation: 3.797%* (+0.495% from last update)
Next Buy Target: $324.65
The healthcare sector came roaring back in Q1-2021 and it certainly shows with Best-of-Breed UnitedHealth (UNH) which made new all-time highs above $400 before pulling back. Despite its stellar performance, I’m keeping my price target under $325 because this wild trader tends to have extremely volatile moves and I’m in no hurry to add more at the current time.
Waste Management (WM): Dividend Reinvestment
Current Price: $137.97
Per-Share Cost: $112.31 (-0.434% from last update)
Allocation: 2.226%* (+0.388% from last update)
Next Buy Target: $119.55
Waste Management (WM) paid out its quarterly dividend of $0.575 per share (an annual yield of 1.76% at its $130.62 price) on March 29 which I reinvested as fractional shares using my broker’s Dividend Reinvestment Program (DRiP).
The dividend reduced my per-share cost -0.434% from $112.80 to $112.31.
* Target allocation for each position in the portfolio is 12.50% of the overall portfolio.
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Disclaimer: Eric "Irk" Jacobson and all other Get Irked contributors are not investment or financial advisers. All strategies, trading ideas, and other information presented comes from non-professional, amateur investors and traders sharing techniques and ideas for general information purposes.
As always, all individuals should consult their financial advisers to determine if an investing idea is right for them. All investing comes with levels of risk with some ideas and strategies carrying more risk than others.
As an individual investor, you are accountable for assessing all risk to determine if the strategy or idea fits with your investment style. All information on Get Irked is presented for educational and informational purposes only.