Transactions in my Portfolio have been sparse in May. Just one move… and it was a buy that I made over two weeks ago.
So, needless to say, this post to provide the details about the purchase is long overdue.
As you probably know, I’m looking to bolster my weighting in the Information Technology sector and this stock fit the bill.
Let’s check out the purchase details…
Skyworks Solutions (SWKS)
Most of my tech stocks are semiconductors stocks and SWKS is part of that group. I’ve owned the stock since late 2015 and it has been a decent performer for me, even though the stock has had a rough go of it the past couple of years, and despite the price being somewhat volatile.
I’d say it’s one of my holdings that I trade more frequently than others. I’ve trimmed my position twice.. once when the stock became overweight within my Portfolio, and once when I thought the shares were overvalued.
Right now I view the shares as undervalued, especially with double-digit earnings growth on tap (according to analysts) in the next couple of fiscal years.
SWKS has delivered double-digit dividend growth in each of the past 8 years, too, and it appears that can continue. Although, given the way companies are being more conservative with their dividend hikes in 2023, that streak could easily come to an end in August (the time we might expect its next dividend raise).
I last bought shares of this stock about 9 months ago. The price hasn’t dropped much since then, but it was a tad lower in price this time around.
On 5/4/23, I bought 5 shares of SWKS at $101.80, for a total of $509.00. The stock was yielding 2.44% at that price, which is roughly one half percentage point below my current Portfolio yield.
My SWKS position grew by a little over 4% with this addition, driving up the number of shares I own to 128.46 shares. The purchase raised my cost basis to $80.43/share.
My Portfolio’s annual forward dividend income increased by $12.40 with the purchase.
SWKS is currently my 3rd largest tech holding, behind Broadcom (AVGO) and Qualcomm (QCOM), a couple other semiconductor stocks. After recent earnings news disappointed investors to some degree, SWKS dipped in price to the mid $90s. It has since recovered most of that retreat, but should it fall into that range again, adding a few more shares is a realistic possibility for me.
Overall, SWKS is my 20th largest position out of 60 stocks. It sits behind Starbucks (SBUX), but holds a slim lead over UnitedHealth Group (UNH).
With SWKS being an existing holding, the number of stocks in my Portfolio didn’t change, holding steady at 60.
Summary
My lone Portfolio transaction thus far in May was a purchase during the 1st week of the month. I bought 5 shares of SWKS, adding to my Information Technology sector weighting (which I seemingly am always looking to do).
My SWKS position has now grown to over 128 shares. While the purchase was at a lower price than my previous SWKS buy, it nonetheless raised by overall cost basis some, to $80.43/share.
The purchase resulted in an investment of $509 into my Portfolio. and raised my forward dividend income by $12.40.
I’m looking for SWKS to deliver some positive price movement in the next couple of years, reversing the decline it had during the past couple. In the meantime, I’ll continue to collect those dividends and look for SWKS to continue providing double-digit dividend raises.
Do you own any SWKS shares? What semiconductor stocks (if any) reside in your portfolio? Please share in the comments!