Jul 25, 2015

Recent Buy

This was most likely my last purchase during July. I wasn't supposed to buy this stock again until in September-October, but it just appeared to be the best deal for my few bucks I had left for this month. So, I decided to add to my position at Omega Healthcare Investors (OHI).




Buy in USD
Omega Healthcare Investors (OHI)
Shares: 3
Trade Price: 36.05
Commission: 0.35
Total: 108.50

Company Information
Sector: REIT - Healthcare facilities
P/FFO:  12,7
Yield: 6,1%
Payout Ratio: 77% of FFO
DGR 5 YR: 10,8%

I was able to give one more push towards August dividends with this purchase. Now with my 19 shares I'm looking to receive $10.45(minus taxes). Thus forward 12-month dividend looks like $41.80(minus taxes). Not too shabby for ~$672 investment. Additionally OHI tends to increase dividend on a quarterly basis. The company didn't disappoint but declared another increase July 15, when they pumped dividend up to $0.55 from prior quarter's $0.54, making a 1,9%  raise. If we go back one year, we are looking at 7,8% raise here.

Check out Roadmap2Retire's interesting summary of US Healthcare REITs. Focusing on skilled nursing facilities (SNF), OHI is clearly less diversified than other large cap HC REITs. Surely, this can be seen as negative, or then OHI is just focusing on what it can do best and does it better than anyone else. This is something that investors need to consider. I think that my HCP position complements my OHI ownership. And I'm still interested to add even third HC REIT to my portfolio, which would be Ventas Inc (VTR). Overall I see this particular REIT sector to be important source of dividend income for me in short term already, and even more so in long term.

Well, now the August dividends are pretty much secured. Really excited to see how much progress I'm able to make from last year. But before that of course we all will wrap up July dividends! And the progress here doesn't look bad at all.

Which stocks do you see as best picks in Healthcare REIT space?

Disclosure: Long OHI, HCP

Image courtesy of ddpavumba at FreeDigitalPhotos.net

9 comments:

  1. Great buy. I'm a recent shareholder of OHI as well.
    Can't complain about the frequent increases indeed!

    Best wishes, DfS

    ReplyDelete
    Replies
    1. Thanks DfS, I'm rather confident that we are going to do well with OHI.
      At my work I get barely one increase per year. And going forward it's probably getting only worse, since our country's economy isn't really flying at the moment. So it feels amazing to receive quarterly increases here!
      Thanks for dropping by.
      DL

      Delete
  2. Nice purchase, DL.
    Really love the OHI business and its been a great performer for me.

    cheers
    R2R

    ReplyDelete
    Replies
    1. Thanks R2R.
      Gotta love it when you have a chance to invest in defensive business at a fair price. And I think that's exactly the case here.
      Thanks also for your article about HC REIT sector.
      DL

      Delete
    2. You are welcome. And thanks for the mention in the article :)

      R2R

      Delete
  3. Nice buy Dividend Lord. We recently became shareholders as well. OHI is a great company with a nice yield and growth. Thanks for sharing your purchase. BTW, we've added your buy to our collection.

    Best wishes and continued success my friend. AFFJ

    ReplyDelete
    Replies
    1. AFFJ,
      It's great to be a fellow shareholder here. Can't really complain about yield or growth.
      Thanks so much for adding my purchase to your collection. It's an honor to be there:)
      Best wishes, DL

      Delete
  4. Another OHI buy. Seems like I'm reading these buys more and more among the dividend community. I can understand why with a lot of future growth ahead of it. I'm sticking with the large health REITs for now but have OHI among other names like LTC and NHI on my radar as well.

    ReplyDelete
    Replies
    1. Hei Keith,
      I'm definitely going with the main stream here:) Too much value, growth and yield in healthcare REIT space to resist. Good to hear that OHI is on your watch list.
      Thanks for stopping by! DL

      Delete