It’s time to post about my first purchase in the month of December. The first two weeks of December had already past and I didn’t have a transaction to note, but I do now.
I got off the sidelines this month by going back to the well with one of my newer Portfolio stocks. This is now my 7th purchase of this stock in the past 7 months.
Needless to say, the position is building nicely. Yet I envision more buying ahead, especially if the stock continues to trade at existing levels or even lower.
Here are my purchase details…
Medtronic (MDT)
About 15 months ago, MDT peaked out at ~$135/share and it’s been a fairly consistent decline into the mid $70s since then.
The stock is now below a P/E ratio of 15… a level it hasn’t seen since early 2014. The stock didn’t have a P/E ratio this low during the depths of the pandemic either.
When MDT’s calendar year ends in April, 2023, it will be a year of negative earnings growth. However, EPS should slowly reverse trend over the next couple of years.
I bought some MDT last month at $76.80 per share. Yet, with the stock continuing to drift ever so slightly down in price, I added some more shares and lowered my cost basis.
On 12/16/22, I bought 10 shares of MDT at $75.95, for a total of $759.50. The stock was yielding 3.58% at that price… approaching 0.8% above my current Portfolio average of 2.77%.
My MDT position grew by 22%, while my share count climbed to 55.397 shares.
The purchase lowered my MDT cost basis to $85.93/share, which was a decrease of more than $2/share.
My Portfolio’s annual forward dividend income also increased by $27.20 due to the buy.
With regard to Portfolio value, MDT continues to move up the ranks. It’s now the 16th smallest holding in my Portfolio (it was previously the 11th smallest). The stock sits in between a couple of Utility stocks in my Portfolio ranks. It’s behind Pinnacle West Capital (PNW) to a decent degree, but just ahead of OGE Energy (OGE).
With MDT being an existing holding, the number of stocks in my Portfolio remained at 58.
Summary
Another month, another MDT purchase. With my latest MDT buy, the stock continues to move up my Portfolio ranks (now 43rd out of 58 stocks) .
My MDT position increased by just more than 22% as a result of the buy. My MDT cost basis continued to decline, too, as I buy the stock at successively lower prices.
The purchase resulted in an investment of $759.50 into my Portfolio. My forward dividend income increased by $27.20.
Do you own any MDT? If so, what do you think of the current stock price? Fairly valued? Slight bargain? Other?
Is there a stock you’ve bought multiple times in 2022? Please share in the comments!
Hi ED,
Like you, I added MDT to my portfolio last week by acquiring 100 shares @ $76 just before the X-date. MDT’s valuation is the best it has been in many years. This is a high quality company with a very bright future which helps a lot of people live better lives. I’ve had it on my watchlist for a while waiting patiently for the right opportunity which I believe it’s right now. As long as it trades in the mid 70’s range, I will continue to add more shares. Best to you.
Welcome, Ralph! Nice to hear that you and I have the same opinion on MDT. I’ll be looking to add more MDT if it continues to trade in the mid $70s as well.
I’ve been adding to MDT too although not in any super meaningful way as I’m needing cash for other potential opportunities. MDT looks great down here though and I expect solid results when looking out 3-5 years down the line.
I agree, JC. Hopefully, I’ll get the chance to add some more shares at current (or lower) levels.