Thursday, October 15, 2015

Dividend Growth Investing at Work - Dividend Increases to Keep You Healthy


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?

Yesterday Omega Healthcare Investors (OHI) announced yet another increase to their quarterly dividend.  The dividend was increased from $0.55 to $0.56.  That's just a 1.82% increase from the previous rate but a 7.70% increase year over year.  Not bad for a company that's currently yielding 6.32%.  This also marks the 13th consecutive increase in the quarterly payout.  OHI also has a solid 13 year streak of increasing payouts to owners.  I like companies such as OHI that reward investors multiple times throughout the year with smaller increases to get just that little bit extra bit of compounding that I can.  Every bit helps, right?  Since I own 71.061 shares of Omega Healthcare Investors, this raise will increase my forward 12-month dividends by $2.84.

My forward dividends increased by $2.84 with me doing nothing.  That's right, absolutely nothing to contribute to their operations.  Based on my portfolio's current yield of 3.31% this raise is like I invested an extra $86 in capital.  Except that I didn't!  One of the companies I own just decided to send more of the profits my way.  That's how you can eventually reach the crossover point where your dividends received exceed your expenses.  That's DIVIDEND GROWTH INVESTING AT WORK!  That's the beauty of the dividend growth investing strategy because you build up your dividends by fresh capital investment as well dividend increases from the companies you own.

The divided increase party for October is just getting under way.  I've already received a raise from YUM Brands (YUM) and now Omega Healthcare Investors and based on increase announcements from last year Aflac (AFL), Visa (V), and Starbucks (SBUX) should all be joining in on the fun.

My FI Portfolio's forward-12 month dividends are up to $5,994.33 and including my Loyal3 portfolio's forward dividends of $58.81 brings my total taxable account forward dividends to $6,053.14.

Do you own Omega Healthcare Investors in your portfolio?  Are you happy with the year over year increase?

Image courtesy of digitalart on FreeDigitalPhotos.net.

4 comments:

  1. It is fun to see these little raises come through! I own OHI as well and like how they pay and do increases. Congrats on our raise!

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    1. Adam,

      It's always a great day to get a dividend raise! More money for nothing! I wish more companies would do these smaller increases throughout the year even if it's just twice a year rather than each quarter. But I don't think that's a battle I'm going to win!

      Thanks for stopping by!

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  2. We don't own Omega Healthcare, but it seems to have a wide following in our online investing community. Thanks to the beauty of compounding, these increases really add up over the long term. They build the snowball, if you will!
    - Bryan

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    1. Bryan,

      Anything that gets me slightly faster compounding is always welcomed. Especially if it doesn't even require any extra work on my part. All I have to do is sit back and you're going to pay me more? Sign me up!

      OHI is in a lot of portfolios and rightfully so. 13 year streak of increases and a solid starting yield as well. I probably won't any more outright purchases of shares for awhile because I want to go more of the diversified route for my HC REITs but I am dripping my dividends to slowly build up the position.

      Thanks for stopping by!

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