Welch Group's strategic portfolio expansion
Welch Group LLC Broadens Portfolio, Boosting Stakes in Stryker, Carrier, Norfolk Southern, and Treasury ETF
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Key Points
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Welch Group’s Stryker stake increased to 26,848 shares after buying 1,551 shares, and institutional investors collectively own a controlling portion of Stryker (77.09% of the stock), underscoring broad appetite for the medical technology company beyond Welch’s move.
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Carrier Global saw Welch Group lift its stake by 13.6% to 143,179 shares, with the body of institutional ownership in Carrier Global including Norges Bank opening a new Q4 position worth about $380.3 million and Capital International Investors holding tens of millions of shares, highlighting wide external interest in the stock.
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Welch’s stake in Norfolk Southern surged 364.4% to 14,503 shares (adding 11,380 during the quarter), a move set against a backdrop of the stock trading near recent levels (opened at 312.88) with a 50-day moving average of 310.79 and a 200-day moving average of 301.10.
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Emerson Electric saw Welch trim its holding by 2.8% to 466,282 shares (about 2.3% of Welch’s portfolio), even as Emerson remained a top holding; the company also declared a quarterly dividend paid on June 10, $0.555 per share, with Welch’s stake reflecting its sizable position.
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In the iShares 3-7 Year Treasury Bond ETF (IEI), Welch Group raised its stake by 216.2% to 12,385 shares, valued at roughly $1.469 million; IEI opened at 117.81, with a 50-day moving average of 117.58 and a 200-day moving average of 118.64, illustrating a shift into shorter-duration Treasuries.
Welch Group LLC made sweeping additions to its equity portfolio in the first quarter of 2026, dramatically expanding positions in Norfolk Southern, Carrier Global, and Stryker while also tripling down on short-duration Treasury bonds. The Birmingham, Alabama-based firm manages roughly $2.66 billion in assets, according to 13F Lab.
The most striking move was a 364.4% surge in the firm's Norfolk Southern stake, jumping from roughly 3,100 shares to 14,503 shares — an addition of 11,380 shares valued at about $4.16 million. The purchases were reported in Welch Group's latest SEC 13F filing, submitted by the May 15 deadline.
Norfolk Southern Bet Surges 364% on New Leadership
Welch Group's Norfolk Southern position exploded from a minor stake to 14,503 shares in a single quarter. The railroad has been under a microscope since the 2023 East Palestine, Ohio, derailment. But CEO Mark George, who took over in September 2024 after his predecessor was fired for policy violations, has pushed hard on operational efficiency, according to AP News.
Norfolk Southern beat first-quarter earnings estimates in April 2026, posting $2.65 per share against a $2.53 forecast. Analysts at Baird and TD Cowen hold ratings ranging from Neutral to Buy, with a median price target of $331.00 — compared to a recent price near $312.88, according to Ticker Nerd. The stock's 50-day moving average sits at $310.79 and its 200-day average at $301.10.
Carrier Global and Stryker Buys Signal Industrial Confidence
Welch Group lifted its Carrier Global stake by 13.6% to 143,179 shares, a position now worth about $8.06 million. CEO David Gitlin has been steering Carrier toward data center cooling infrastructure to offset a cooling residential market, according to Carrier Investor Relations. The move put Welch in company with heavyweight investors — Norway's Norges Bank opened a new Carrier position worth $380.3 million in Q4 2025.
Stryker got a 6.1% boost, with Welch adding 1,551 shares to reach 26,848, valued at roughly $8.8 million, according to Watchlist News. Stryker's stock jumped 5.2% in late June as investors reassessed the company after a brief cyber disruption earlier in the year. Institutional investors as a group control 77.09% of Stryker's shares, a signal of broad, deep confidence in the medical device maker.
Treasury Bond ETF Position Triples as a Rate Hedge
One of the sharpest moves in the quarter had nothing to do with stocks. Welch Group raised its position in the iShares 3-7 Year Treasury Bond ETF — ticker IEI — by 216.2%, going from roughly 3,900 shares to 12,385 shares, a stake worth about $1.47 million. The ETF targets intermediate-term government debt, sitting between short-term cash and longer, more rate-sensitive bonds.
Fixed-income analysts view the move as a "duration hedge" — a way to reduce exposure to long-term rate swings if inflation stays sticky into late 2026. IEI opened recently at $117.81, with a 50-day moving average of $117.58 and a 200-day average of $118.64, according to MarketBeat. The shift suggests Welch is prioritizing liquidity and principal protection over higher equity returns.
Emerson Electric Trimmed but Stays the Portfolio's Crown Jewel
Welch Group cut its Emerson Electric holding by 2.8%, trimming 13,500 shares to land at 466,282 shares — still valued at roughly $61.1 million and the largest single position in the portfolio. That makes Emerson about 2.3% of the firm's total assets. Analysts and dividend trackers call it the portfolio's anchor, with a dividend history stretching back to 1947, according to Koyfin.
Emerson declared a quarterly dividend of $0.555 per share on May 5, 2026, paid to shareholders on June 10. The trim looks more like routine rebalancing than a retreat. Welch's position remains large enough to collect hundreds of thousands of dollars in dividend income each quarter, reinforcing the firm's fee-only, income-focused investment approach.
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