Thursday, May 14, 2015

Recent Buy


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.

10 comments:

  1. Nice buy. I am an owner also, I am waiting for the $34 range to add, but I will likely be buying HCP tomorrow. Good luck

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  2. Nice buy, JC. Looks like a lot of DGIs buying it these days. Congrats on adding an extra $64 in dividend income.

    Thanks for linking to my analysis article.
    R2R

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  3. Nice buy. My AA is full up on REITs so I'll be looking elsewhere for now.

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  4. Great buy once again JC! Very popular among div bloggers, but not wondering why!

    Cheers!

    Mike

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  5. JC,

    Looks like we're on the same page here! :)

    Enjoy that extra dividend income. I think we'll do well here.

    Cheers!

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  6. Nice buy JC - we are watching OHI closely and they are one of our top three candidates for our next stock purchase. Hope to be a fellow stockholder soon! :) AFFJ

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  7. Good choice JC,

    I wish I could be purchasing some American REITs, but the conversion rate from the CAD to the USD is just too much for me to justify it at the time of writing...

    Thanks for the details,
    Dividend Beginner

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  8. I plan to add some next Tuesday. Probably $1200 worth or so.
    Thanks,
    WE

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  9. Great move JC! So glad to be on the same page as you here, it's gonna be a good ride :)

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  10. REITs are the word. It seems like many are liking OHI at the moment along with other REITs that are non-health. I like my big three health REITs and will probbaly add to other names over time. For now Ill focus on my HCP, HCN and VTR.

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