Home Run Number 2

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While $GME was all over the news for the last couple of days around the short squeeze, today also Ebix Inc. (Ticker: EBIX) was one of the stocks seeing a huge jump. At market close on Wednesday, 27th of January, it had gone up by $10.49 or 21.8%, making Ebix Inc. my second home run!

I designate stocks whose total returns exceed my initial capital outlay, home runs. For dividend growth stocks, total returns include both unrealized gains and dividends received.

 

Home Run #2

Just shortly after my first ever home run stock Discovery Financial Services (Ticker: DFS) today I can call my second home run on Ebix Inc. (Ticker: EBIX).

Volatility had been up in the markets for certain stocks as quarterly results came in for many holdings and EBIX Inc. (Ticker: EBIX) was no exception. On Wednesday, 27th of January, the market opened already at $46.00, run all the way up to $64.14 to close at $58.63, enough to surpass the threshold of $51.36 to become a home run in my portfolio.

My average cost basis for Ebix is $25.76 and I’ve received dividend income totaling $6.00 since first buying the stock in August 2020.

Here is a table showing the buy dates, number of shares, and the average cost basis of my EBIX shares:

 

Here is a price chart of EBIX indicating my buys and current price level:

 

Home Run Contenders

There is currently no stock close to approaching home run status. All returns are below 70% of total return.

 

DGJ’s Home Runs

Here is a list of DGJ’s home runs with updated total returns (and annualized total returns if held longer that one year):

  • Home run #1: Discovery Financial Services (DFS) — up 84%
  • Home run #2: Ebix Inc. (EBIX) — up 127%

 

Once a position reaches home run status, it retains that status even if the stock price drops and the total returns dip below the 100% mark. Also, if I buy additional shares of a home run stock at a higher cost basis, the calculated total returns could also drop below 100%.

 

Concluding Remarks

With total returns exceeding my initial investment, Ebix is the second home run stock in my Dividend Growth Journey portfolio. I’m looking forward to seeing if I can continue this streak in 2021.