I bought shares of Broadcom (Nasdaq: AVGO) for the former iPIG Portfolio account in January 2020, at a split-adjusted price of $31.20 per share. Today, its stock price increased by $37.76 per share. I do believe that qualifies as a “Spiffy Pop”.
As a dividend growth and value oriented investor, it is very rare that I own a stock that goes on to Spiffy Pop. Indeed, I only recall one other time, and that only qualified on a technicality based on the complicated nature of the stock involved. It was when Kinder Morgan (NYSE: KMI) consolidated its share classes. As a reasonably long-term owner of Kinder Morgan Management (Former ticker: KMR) at the time, I had an exceptionally low basis price of those shares due to the way it handled dividends. Due to the consolidation related move, the shares of that ticker spiked just enough to get me into Spiffy Pop territory.
It is remotely possible that I’ve had other Spiffy Pops, but I don’t generally go looking for them.
That said, Broadcom’s dividend has increased at a healthy pace from $0.325 per spit-adjusted share per quarter when I bought it in early 2020 to a current level of $0.59 per share per quarter. Its yield was roughly 4% at the time of my original purchase but is below 1% now.
All that said, I’m not sure I’d be a buyer in Broadcom at today’s prices, but I’m glad I bought back when I did. As of today, it has the largest absolute dollar return for the former iPIG portfolio. Still, today’s jump was on AI news, and with a price to sales above 27 and a price to trailing earnings around 90, there’s a lot of hope and perfect execution priced into today’s move.
Frankly, I’m a bit shellshocked…
Regards,
-Chuck
Disclosure: I own shares of Kinder Morgan and Broadcom.
