Hi everybody. I made a single Portfolio transaction last week that I’d like to provide an update on. It was a purchase of an existing Portfolio holding.
The buy took a bottom-10 holding and vaulted it higher in my Portfolio rankings. I’ll let you know how far it climbed in just a bit.
The best part… it was a stock in the Information Technology sector. As you probably know, I’ve been on the lookout to increase my weighting in this sector. Well, my opportunity arrived.
I’d added to this holding twice already in 2025, including last month, but with the stock falling in price rather dramatically recently, I added a larger number of shares during this latest purchase. In addition, with this buy I secured my lowest purchase price for this stock ever. So, expect a decent reduction in my cost basis.
Alright, let’s get to the details for my most recent Portfolio purchase…
Accenture (ACN)
I didn’t wait long to buy more of this IT Consulting Services company. After adding 3 shares in March @ $298, then buying another 5 shares last month @ $277, the stock price continued to retreat… significantly.
The stock recently hit a 52-week low (below $240). The price hasn’t dropped this low since late 2020. In addition, ACN has now reached a low valuation that I don’t believe it’s reached over the past decade.
The stock’s dividend yield has risen to 2.38%, nearly 1 full percentage point above its 5-year average of 1.47% . Its current forward P/E ratio of 18.5 is also well below its historical norm of 27.2, as well as currently below the 22.5 of the entire Information Technology sector.
Analysts still project high single-digit earnings growth over the next couple of years, and dividend growth has held steady with a low double-digit percentage.
In an effort to continue growing this position, and to fortify the weighting of my Information Technology holdings, I decided to add more shares yet again.
On 8/11/25, I bought 15 shares of ACN at $237.38/share, for a total of $3,560.70. The stock yielded 2.49% at my purchase price, which is marginally below my current Portfolio yield of 2.65%.
The purchase boosted my share total by more than 58%, and my ACN position now stands at 40.756 shares. My forward dividend income jumped by a healthy $88.80.
As a result of the purchase, my ACN cost basis was lowered by $11.52/share, to $257.05/share.
ACN was my 9th smallest position just prior to this buy. However, it soared up my value rankings by 18 spots to become my 27th smallest holding, nearly creeping into my top half of holdings. Currently, after a small recovery in price, ACN is my 28th smallest holding, trailing behind close-end fund DNP Select Income Fund (DNP), but a bit ahead of UnitedHealth Group (UNH).
If ACN continues to recover in price, I’ll probably hold off on further purchases. However, should ACN drop in price, I could see making another small addition to take advantage of the low valuation.
Summary
My first transaction in August was a purchase of ACN. With the stock’s recent price decline, I decided to advance my position and lower my cost basis.
The purchase was an investment of $3,560.70 into my Portfolio – a fairly chunky investment.
I bought 15 shares of ACN, driving my share total to nearly 41 shares. The boost to my forward dividend income was a little shy of $89.
My cost basis fell by roughly $11.5/share to end around $257/share.
I’m open to buying more ACN should the price trade for an even lower price than I just bought.
With ACN already being a part of my Portfolio, the number of stocks/funds in my Portfolio remained at 58.
What to you make of ACN at its current price level? Would you be inclined to buy? Is ACN already part of your portfolio? I look forward to your comments!