Ten-Bagger Number 3

I'm delighted to announce DivGro's third Ten-Bagger!

Microsoft (MSFT) was the first DivGro stock to achieve Ten-Bagger status. To date, one lot of 80 shares I bought in August 2013 at $31.76 per share has returned 1,520% on my initial investment of $2,540.60. The total return of $38,619.20 includes dividends of $1,941.40.

My second Ten-Bagger was Apple (AAPL), which turned a $2,255 investment into $24,680, including dividends of $643.25. Since achieving Ten-Bagger status, I've sold half of my original AAPL shares (which were held in our taxable account) and bought 30 AAPL shares (now held in a tax-deferred account). As a consequence, my cost basis increased to $91.77, so now AAPL's total return is "only" 135%.

I invest in both high-yielding, low-growth and low-yielding, high-growth stocks.

Generally, investing in stocks with high dividend growth rates will increase your total return prospects and your chances of Ten-Baggers, provided you hold such stocks for a very long time!

Ten-Bagger #3

My third Ten-Bagger is Broadcom (AVGO).

On 21 December 2018, I purchased 100 shares of AVGO at $25.04 per share (split-adjusted). With AVGO now trading at $270.12 per share, my initial investment of $2,504 is now worth $27,112. Additionally, AVGO has paid dividends totaling $1,051.67 on those shares.

(27,112 + 1,051.67)/2,504 - 1 = 10.247 or 1,025%

It took AVGO about 6.53 years to reach Ten-Bagger status.

AVGO is a Dividend Contender with a dividend increase streak of 16 years and a quality score of 22:

AVGO has a forward yield of 0.87% at $271.12 per share. My yield on cost is 9.42%.

AVGO's 5-year dividend growth rate is 13.6% and I project an even higher dividend growth rate of 15.8%.

Below is a price chart of AVGO indicating my trade and the point where the stock became a Ten-Bagger (with total returns exceeding 1,000%):

To date, AVGO has delivered a total return of 1,025%, or 44.8% annualized.

Ten-Bagger Contenders

I consider Ten-Bagger Contenders to be stocks with 800% or higher total returns.

Currently, there are no Ten-Bagger Contenders.

Concluding Remarks

With total returns exceeding 1,000%, AVGO is DivGro's third Ten-Bagger!

Thanks for reading, and happy investing!
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