Earlier this month, I made a pair of Portfolio transactions. I’m ready to share the details for those two moves now.
I started with a small trim of an existing Portfolio position. Then, I followed that up with a purchase of an existing holding.
With the sell, I trimmed an Information Technology stock that has exploded in size within my Portfolio. I mentioned the potential trim in my last monthly Portfolio Thoughts post, and then delivered on the suggestion. The trim was quite minor though. I’ll share ‘why’ coming up.
As for the buy, I stayed in the Information Technology sector and I added to a position of mine that has been getting pummeled in the stock market in 2026… perhaps too much so… or at least that’s what I felt. I bought what looks to be an undervalued stock at the lowest price I’ve seen for it since initiating my position back in late 2022.
The result of the two moves was a small net investment (more than $300), and a solid increase to my forward dividend income.
Here are the details for my most recent pair of Portfolio transactions…
Broadcom (AVGO)
AVGO began 2026 with a weighting of more than 11.5% in my Portfolio. After a year-to-date gain of almost 20%, that weighting had grown to more than 12.6%.
Typically, I don’t wish any one position in my Portfolio to exceed a 5% weighting. So, to have one sporting a double-digit percentage is eye-opening. However, I’ve been trying to let my winners run… and run this one has.
One downside to a sale is that almost all of the sales proceeds will be capital gains (with minimal return of capital), since my AVGO cost basis is so low (only $31.17/share). Yet, I tried to mitigate that aspect by selling my most expensive shares, which happened to come from my most recent dividend reinvestments.
As you’ll see, the trim wasn’t very significant, but I did trim some, and it allowed me to reinvest the sales proceeds into something that appeared undervalued in today’s stock market.
On 5/6/26, I sold 3 shares of AVGO at $425.236667/share. The sale proceeds were $1,275.68 after a $0.03 SEC fee.
At my sale price, shares of AVGO yielded 0.61%. This is a bit less than 1/4 of my current Portfolio yield of 2.49%.
With this sale, I realized a long-term capital gain of $435.88 and a short-term capital gain of $94.06. The sale also resulted in a minor $7.80 reduction in my annual forward dividend income.
Just under 1% of my AVGO position was sold. I still have 300.541 shares of AVGO remaining in my Portfolio. As a result of the trim, the cost basis of my remaining shares dropped by $2.17/share, to $29.00/share.
Despite the trim, AVGO held steady at #1 in my Portfolio rankings. The next largest weighting in my Portfolio belongs to Qualcomm (QCOM) at 5.34%.
I’m still considering further AVGO trims, however, I’m attempting to keep my income low in 2026 in order to minimize my tax burden. Thus, we’ll see how things play out.
Let’s see what I did with the AVGO trim proceeds…
Accenture (ACN)
ACN opened 2026 with a price of $268.30/share. However, as of May, the price had plunged by over $100/share, below $160. Investors seem to believe that generative AI will hurt the company’s traditional consulting model, and that many of ACN’s clients might replace consultants with various AI tools for such things as early-stage consulting, data gathering and app maintenance.
With ACN falling below $160, the stock seemed ripe for an addition for me, especially considering its free cash flow is still strong, and that the company is winning AI implementation contracts.
I last purchased ACN in September of last year at $238.95/share (which was my lowest purchase price for any of my lots). My cost basis dipped to $255.71/share after that purchase.
With ACN falling so quickly in 2026, I didn’t want to try to catch a falling knife, but the price got so low that I believed a buy would be worth it given a chance to recover in the months/years down the road.
Plus, adding to ACN allowed me to keep my AVGO sales proceeds in the Information Technology sector, as opposed to going further underweight that sector in my Portfolio.
On 5/13/26, I bought 10 shares of ACN at $159.70/share, for a total of $1,597.00. The stock yielded 4.08% at my purchase price. This is better than 1.6x my current Portfolio yield.
The purchase raised my ACN share total by 22.7%. I now own 54.046 shares of the company. The buy also added a solid $65.20 to my annual forward dividend income.
My cost basis for ACN fell by a noticeable $17.76/share, to $237.95/share. It appears I will be underwater for a while in my position unless a swift recovery takes place.
With the share addition, ACN rose three spots in my Portfolio rankings, climbing from my 41st largest holding to my 38th largest holding.
ACN has already gained nearly $20/share since my buy. Should ACN continue its rapid ascension in price over the next couple of weeks, I may sell 10 of my most expensive shares. This would allow me to lower my cost basis, while also allowing me to record a long-term capital loss that I can use to offset some long-term capital gains from earlier in the year.
Summary
I’ve executed two Portfolio moves thus far in May. I started with a small trim of my AVGO position, and followed that up with a decent addition to my ACN position.
I used all of the AVGO sales proceeds, and some cash, to purchase the ACN shares.
The two transactions resulted in a net investment of $321.32 into my Portfolio. My annual forward income rose by $57.40 as a result of the two moves.
My AVGO trim had me realize a long-term capital gain of $435.88 and a short-term capital gain of $94.06.
My cost basis for my remaining AVGO shares dropped to a minuscule $29.00 with the trim. With the purchase, my ACN cost basis fell to $237.95, but this still has me deeply in the red with this position.
With AVGO remaining in my Portfolio, and ACN already being a part of my Portfolio, the number of stocks/funds in my Portfolio remained at 57.
If you own any AVGO, have you been trimming your position at all given its big price climb? Have you been looking at buying any ACN at current prices, or is the uncertainty surrounding the stock keeping you away? I look forward to your comments!