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Pandemic Portfolio: Update #5

This is an update to a series. See Starting a Portfolio from Scratch to learn how it started.

Wait a little, Add a little…

The market hasn’t seen as much volatility over the past month (since my last update) as it did in September so there’s been a bit of sitting on my hands, collecting dividends, and revisiting strategies.

This week, a poor outlook for 5G rollouts led to my adding more to Crown Castle (CCI) so it was time for an update of where the Pandemic Portfolio stands and what adjustments I’ve made to my price targets to add more to the positions in this stalwart dividend-earning collection.

Costco (COST): Strategy Update

Current Price: $374.60
Per-Share Cost: $303.50 (Unchanged from last update)
Profit/Loss: +23.43%
Allocation: 3.690%*
Next Buy Target: $338.90

Costco (COST) continues to dominate during the pandemic, rarely pulling back to offer a buying opportunity. While I typically abhor buying a stock at above my per-share cost, I’m having to make a lot of exceptions in this portfolio, a high-quality problem given how far a few of the positions have run.

Costco remains the Best-in-Breed retailer in or out of the pandemic, and, accordingly, I’m going to add more to this high-flyer if it pulls back.

Crown Castle (CCI): Added to Position

Current Price: $158.47
Per-Share Cost: $162.50 (-2.167% from last update)
Profit/Loss: -2.48%
Allocation: 3.917%*
Next Buy Target: $148.90

Crown Castle International (CCI) paid out its quarterly dividend of $1.20 per share on October 1, 2020 which gave it an annual yield of 2.89% as of its $166.10 closing price.

Since CCI is enrolled in the Dividend Reinvestment Program (DRiP) with my broker, I received shares instead of cash, lowering my per-share cost -0.72% from $165.23 to $164.04. 

After reporting disappointing forecasts and a poor earnings report on October 21 reporting a loss of -$0.11 per share when the street expected a profit of $0.49 per share, Crown Castle (CCI) crashed through the 200-day Moving Average and triggered a buy order I had in place which filled at $156.29 on Thursday, October 22 when CCI was yielding an annual dividend slightly more than 3%.

Thursday’s buy lowered my per-share cost -0.94% from $164.04 to $162.50. By Buying in Stages, I have lowered my per-share cost a total of -2.83%, so far, from my initial $167.24. My next buy target is $148.90.

CCI closed the week at $158.47, up +1.39% from where I added.

Digital Realty Trust (DLR): Dividend Reinvestment

Current Price: $152.60
Per-Share Cost: $136.27 (-0.76% from last update)
Profit/Loss: +11.98%
Allocation: 2.285%*
Next Buy Target: $141.90

Digital Realty Trust (DLR) paid out its quarterly dividend of $1.12 per share on October 1, 2020 which gave it an annual yield of 3.05% as of its $146.74 closing price.

Since DLR is enrolled in the Dividend Reinvestment Program (DRiP) with my broker, I received shares instead of cash, lowering my per-share cost -0.76% from $137.31 to $136.27. 

Like several of the other positions in this portfolio, Digital Realty Trust’s strength means I’m eyeing adding more to this position at a price point ($141.90) above my per-share cost.

Microsoft (MSFT): Strategy Update

Current Price: $216.23
Per-Share Cost: $178.41 (Unchanged from last update)
Profit/Loss: +21.20%
Allocation: 2.134%*
Next Buy Target: $200.30

Microsoft (MSFT) continues to hold up like a champ despite challenges coming to the tech sector from time to time. Accordingly, I’ve raised my price target to add to this position slightly above $200, 12.27% above my current per-share cost.

Hey, when you want the best, sometimes you have to pay up.

Pepsico (PEP): Dividend Reinvestment

Current Price: $139.56
Per-Share Cost: $129.41 (-0.55% from last update)
Profit/Loss: +7.84%
Allocation: 2.769%*
Next Buy Target: $130.90

Pepsico (PEP) paid out its quarterly dividend of $1.02 per share on October 1, 2020 which gave it an annual yield of 2.94% as of its $139.30 closing price.

Since PEP is enrolled in the Dividend Reinvestment Program (DRiP) with my broker, I received shares instead of cash, lowering my per-share cost -0.55% from $130.12 to $129.41. 

Pepsico continues to demonstrate why it’s Best-of-Breed in the soda and snack sector, leading me to raise my buy target above my per-share cost once again to grab some more of this long-termer if it decides to sell off.

UnitedHealth (UNH): Strategy Update

Current Price: $330.60
Per-Share Cost: $280.03 (Unchanged from last update)
Profit/Loss: +18.06%
Allocation: 1.639%*
Next Buy Target: $280.90

UnitedHealth (UNH) has demonstrated some true strengths over the recent weeks and months, however, unlike some of the positions I’ve talked about above, UnitedHealth is notoriously volatile, selling off in excess of 30% seemingly on a whim.

Because of this and the potential volatility stemming from the presidential election, pandemic response, and myriad of negative catalysts on the horizon, I’m keeping my buy price target near my per-share cost for this monstrous mover.