Hey everyone! I made a very small transaction last week that I need to report on. Considering the move took place in April and we’re nearly a week into May, I need to catch up.
This stock was on my watchlist, and dipped below my target price, so I made a small addition. It’s also a position I haven’t added to in over 1 year.
This stock is one of my smaller holdings, but it’s at least outside of my Bottom 10. I’m happy to see the position grow within my Portfolio.
Here are the purchase details…
Accenture (ACN)
This is my 3rd overall purchase of ACN. Both previous buys were executed in a 3-month span back in late 2022 and early 2023.
From a P/E ratio perspective, this small purchase was a bit more expensive than my other two, being done at a P/E ratio slightly north of 25.
I’m always on the lookout to add to my Information Technology holdings, and this buy qualifies for that.
ACN’s stock price has tumbled quite a bit since the beginning of March. It’s fallen from a price over $385 to about $300. This was directly on the heels of a 50% gain in just one year.
While not inexpensive, I felt the price was acceptable enough, especially since this stock has traded at a premium for most of the past 6 years.
On 4/29/24, I bought a single share of ACN at $302.95. The stock was yielding 1.70% at that price. This yield is slightly more than 1 percentage point below my current Portfolio yield of 2.76%.
My ACN position grew by 6.55% with this addition, bringing my share total to 16.269 shares. The purchase raised my cost basis by nearly $3/share, to $257.96/share.
With this buy, my Portfolio’s annual forward dividend income increased by a small $5.16. Every dollar adds up though!
ACN didn’t move much in my Portfolio ranking since my purchase was rather small. It currently sits as my 12th smallest holding. However, it closely trails Pinnacle West Capital (PNW), Hershey Co. (HSY) and Cummins (CMI), but has a decent cushion on Bristol-Myers Squibb (BMY).
ACN is currently my 2nd smallest Tech holding, too, ahead of only Amdocs Ltd (DOX).
With ACN being an existing holding, the number of stocks in my Portfolio held steady at 58.
Summary
April was quiet with regard to Portfolio moves I made, but I did sneak in one last transaction before month’s end.
In this case, I added just a single share of ACN, deploying a little bit of capital to my Information Technology sector.
ACN was on my radar coming into the month, as the stock was part of my watchlist. Its stock price dropped quickly & noticeably below my target price, so it was an easy decision for me to add.
This stock still remains a smaller part of my Portfolio and more buys will be needed to bring it up to a 1% Portfolio weight.
This buy resulted in an investment of $302.95 into my Portfolio, and increased my forward dividend income by $5.16.
My cost basis rose marginally with the buy, too – to just under $258/share . I’m still comfortably in the green with this position though.
I’ll look to add more ACN shares should its price decline further. A price south of $300 would be attractive to me.
Do you have any Tech stocks in your portfolio that appear attractively priced? Tell me about them! What sector represents the largest portion of your portfolio? Please share in the comments!