I’ve got more Portfolio transactions to cover.  In this latest batch of moves, four stocks were involved.

All the transactions took place in the first third of November.  I had one sale and three purchases.

The stock I sold was eliminated from my Portfolio.  It was the fifth stock exiting my Portfolio in 2022.  I used the sale proceeds and a tiny bit of cash to make my buys.

The stocks I bought were all existing Portfolio positions.  Each buy was at the lowest purchase price I’ve had for that particular stock.

My forward dividend income dipped a bit thanks to the moves, but not by much.  I’ll provide details in the write-up that follows.

Let’s get this started…

 

STORE Capital (STOR)

A couple of months ago, news broke that STOR was to be acquired by an institutional investment firm.  STOR investors are to receive $32.25 per share, with the deal closing early in 2023.

There was also going to be one final dividend payment prior to the transaction closing.  This occurred in October.

With the last dividend collected and STOR trading fairly close to the acquisition price, I sold my shares early and used the proceeds to invest in other stocks which appeared undervalued now.

On 11/3/22, I sold all 72.605 STOR shares I owned at $31.72/share.  The sale proceeds were $2,302.98, after the $0.05 SEC fee.

At my sale price, shares of STOR yielded 5.17%.  This yield approached 2x my current Portfolio yield of 2.72%.

I realized a short-term capital gain of $179.16.  The sale also resulted in a reduction of $119.07 in annual forward dividend income.

Unfortunately, I didn’t get to hold the shares very long, having only established a position this past March, then adding to it in May.

Here’s what I did with the STOR sale proceeds…

 

Comcast (CMCSA)

I started my CMCSA position back in early 2018.  I’ve since added to it four additional times.

I decided to add to it for a fifth time because CMCSA dipped to its lowest price since I’ve owned the stock.  Of course, this allowed me to lower my cost basis.

While the stock actually breached the $30 mark, I didn’t secure a price below that level.  Still, I was happy with the share addition I was able to make.

On 11/3/22, I bought 20 shares of CMCSA at $30.20/share, for a total of $604.00.  This was a 10.8% increase in the size of my position.

The stock yielded 3.58% at my purchase price, approaching 1% higher than my current Portfolio average.

I now own 205.004 shares of CMCSA.  My cost basis was lowered to $36.33/share.

My annual forward dividend income increased by $21.60 as a result of the purchase.  Unfortunately, this only recouped about 18% of the lost dividend income from the STOR sale.

CMCSA now stands as my 33rd largest Portfolio position… roughly in the middle of the pack.  In my Portfolio ranks, CMCSA sits behind Bristol-Myers Squibb (BMY) and ahead of Lockheed Martin (LMT).

 

Medtronic (MDT)

I only established a position in MDT this past June.  Since then the price has only seemed to decline further.

So, I’ve been adding to my position in small chunks along the way.  This latest buy was my fourth addition since I initiated the position.

Most of my Healthcare holdings are drug makers, so with MDT focusing on medical devices, it provides some diversification to my Healthcare group.

MDT is also my smallest Healthcare name, so making it a more significant part of my Portfolio agrees with me.

On 11/9/22, I bought 5 shares of MDT at $79.8882/share, for a total of $399.44.  This resulted in a 16.4% increase in the size of my position.

The stock yielded 3.40% at my purchase price… which is about 0.7% better than my current Portfolio average.  However, as it did with CMCSA, this also fell short of STOR’s yield.

My MDT position has now grown to 35.397 shares.  My cost basis has dropped to $91.34.  I’d like to get the cost basis well under $90 while MDT continues to trade in the low $80s.

My annual forward dividend income rose by $13.60 as a result of the MDT purchase.  This recouped another 11.4% of the lost dividend income from the STOR sale.

MDT exists as my 8th smallest Portfolio position.  Another similarly sized purchase would come close to getting the stock out of the bottom 10.

With the purchase, MDT came to rest behind VICI Properties (VICI) but ahead of Cummins (CMI) in my Portfolio rankings.

 

Best Buy (BBY)

BBY is a stock I’ve owned for even less time than MDT.  The stock only arrived in my Portfolio less than 2 months ago.

This is my first addition since I initiated the position.  It was nice to grab the new shares at a slightly lower price than in September.

While 2022 has been a tough year for the stock, better times are forecast for the next couple of years.  Analysts are expecting ~15% EPS growth over that time.

BBY appealed to me due to its strong dividend growth over the past several years.  This growth may have to slow though since the EPS and free cash flow payout ratios are pushing higher this year.

On 11/9/22, I bought 20 shares of BBY at $67.25/share, for a total of $1,345.00.  This was a robust 66.7% increase in the size of my position.

The stock yielded 5.23% at my purchase price, or just about 2x my average Portfolio yield.  This bested the yield STOR provided by a very small margin.

My BBY share total climbed to 50 after the purchase.  My cost basis decreased just a bit to an even $68/share as a result.

Annual forward dividend income increased by a healthy $70.40 with the purchase.  This returned 59.1% of the dividend income lost in the STOR sale.

As for its Portfolio rank, BBY has left my bottom 10 holdings thanks to this latest purchase.  It’s now the 12th smallest holding in my Portfolio.  BBY settled in the rankings in between a couple of my Information Technology names in Microsoft (MSFT) and Amdocs Ltd. (DOX).

 

Summary

With my second set of Portfolio transactions in November I made four total moves.  These moves were comprised of one stock sale and three stock purchases.

The sale eliminated my STOR position (which was going away soon anyway) and I used the sale proceeds to add to three existing Portfolio stocks that appeared undervalued.

My purchases consisted of CMCSA in the Communication Services sector, MDT in the Healthcare sector, and BBY in the Consumer Discretionary sector.

All of my purchases yielded at least 3.4%, but from an income perspective the group didn’t quite make up for the 5.17% yield I lost in the STOR sale.

Accounting for all the transactions, I made a net investment of $45.49 into my Portfolio.  However, my annual forward dividend income decreased by $13.47.

I realized a short-term capital gain of $179.16 on the STOR sale, too.

With STOR leaving my Portfolio, and all my purchases being existing Portfolio stocks, the number of stocks in my Portfolio fell by one to 58.

 

If you have STOR in your portfolio, are you planning to wait for the acquisition to close?  Do you own any of the three stocks I purchased?  Which of the three feels like it has the best current value to you?  I look forward to your comments!