Thursday, May 14, 2015
Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.
This afternoon I purchased 30 more shares of Omega Healthcare Investors (OHI). I purchased 30 shares for $35.28 per share. After commission my per share cost basis came to $35.55. Based on the current quarterly dividend of $0.54 per share, this lot will provide $64.80 in annual dividends and carry a YOC of 6.08%. This purchase was a bit smaller than my normal purchase but capital is a bit tighter so I'm content with making smaller purchases. I used a portion of the proceeds from my recent sale of ARCP to make this purchase.
I originally purchased shares of OHI in March of this year. I purchased 40 shares of OHI and since then the share price had declined over 9% so I felt that now was a good time to average down my cost basis. This lot was purchased for 9.32% less than my original lot and lowered my per share cost basis by 4.00%.
REITs in general have taken a hit over the last month or so due to the increased likelihood of a rate increase. As long as interest rates are slowly increased REITs should have plenty of time to adjust without taking a huge hit. I'm also very bullish on the health care sector as the population trends are hard to ignore regarding future growth over the next 20-30 years. Nothing has materially changed for OHI since I first purchased shares other than the Aviv REIT acquisition taking a little bit longer than expected to close. But that has since finished and management can now focus on incorporating all the new properties. Roadmap2Retire has a good write up discussing OHI and why investors should be looking to add shares after the recent dip.
My FI Portfolio's forward 12-month dividends increased to $5,751.55. Including the $55.98 from my Loyal3 portfolio brings my total taxable accounts forward dividends to $5,807.53.
Image courtesy of Stuart Miles on FreeDigitalPhotos.net.