Thursday, June 25, 2015

RECENT BUY - (NYSE : OHI)

WE RECENTLY PURCHASED THE FOLLOWING


OMEGA HEALTHCARE REIT INVESTORS INC (OHI)
Purchased 10 shares of OHIon 6/25/2015 at $34.75
Total Spent: $347.50
$21.60 added to annual dividends


Our purchase of Omega Healthcare REIT Investors, Inc (OHI) was based on the results from our recent ASK THE READERS post. This morning, with OHI seemingly this month's reader's pick, we decided to set a limit order to buy the stock at $38.75.  And on the same day that our limit order was placed, the market provided us with an opportunity to add another company to our family's dividend stocks portfolio. With the recent pull back, we were certainly happy grabbing a few shares at our limit price.  

However, since we feel that real estate stocks may continue to fall further as the FEDS inevitably raise rates later this year, we decided not to spend a huge amount of capital on this initial purchase.  If OHI continues to dip and fall into the $20s, we wouldn't have any problems grabbing few more shares to average down our cost basis. 

With the recent purchase Omega Healthcare REIT Investors, Inc (OHI), our family's dividend stocks portfolio now holds a total of 40 different dividend paying stocks/ETFs in the portfolio. Our estimated forward dividends grew another $21.60, putting our yearly dividends at approximately $2,893/year (excluding our Edwards Jones account) and $3,275/year (including our Edward Jones account).

Our family's dividend stocks portfolio may be found
by clicking on the link below:

We also maintain an extensive list of stock analysis
that can be access through the link below:

We also just started a list of Recent Buys by other bloggers
that can be access through the link below:



HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:

OMEGA HEALTHCARE REIT INVESTORS INC (OHI)
P/E: 21.59
Payout Ratio: 130%
Dividend Yield: 6.2%
5 consecutive years of dividend increases
Last Ex-dividend date: 4/28/2015
Next Ex-dividend date: approx. - 7/28/2015
Have paid a dividend since: 1992 23 years)
Pays a dividend 4 times a year.

Market Cap: 6.3 Billion
52-week high: $45.46
52-week low: $33.69

Purchased Price: $38.75

What are your thoughts about my recent purchase?

What are you buying?

8 comments:

  1. Awesome Purchase AFFJ. Love it. Keep it up bud. If it falls further, just add more to this awesome company. Take care and thanks for sharing my friend.

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    1. Thanks Hustler. That is certainly the plan and why I didn't commit a lot of funds initially. We definitely plan to continue adding to this holding even if it continues to fall. AFFJ

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  2. I think this is a real smart move. You will probably have an opportunity to add to it over the coming months at a cheaper price. Lets hope so i can add to my position as well!

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    Replies
    1. I think you are right Adam. With interest rates slowly climbing, I think there will be opportunities to add at lower prices. Even though it will affect our recent buys in the short term, we would welcome the opportunity to add more shares and hope you get the opportunity as well my friend.

      Cheers to future growth. AFFJ

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  3. Great purchase, AFFJ. I think you are approaching this the right way - starting with a small position and dipping the toes in. Once the interest rate jitters subside, ppl will realize that a few basis points increase in interest rates does not mean they will get 4-5% yield in bonds. Investors will still look towards REITs, MPLs and Utilities for income....a good opportunity this year and next to go long on stocks in these sectors.

    R2R

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    1. Thanks R2R. We figured with our free trades, we can take this kind of approach and not worry about a commission affecting our cost basis. I would have to agree with your thoughts on interest rate jitters. I also think it will be short lived. The Feds are doing a good job keeping things at bay so I don't expect a huge correction any time soon. But the small corrections among various sectors reacting to the current news trends should still continue to provide great buying opportunities. AFFJ

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  4. AFFJ,

    Great purchase, big healthcare REIT, of course, as they have been beaten down without a doubt. It's very interesting, shaky market, opening up yield opportunities.

    -Lanny

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    1. Thanks Lanny. Health Care REITs have been popular among fellow Dividend Growth Investors. We recently purchased HCP prior to this buy of OHI. The recent pull back has certainly offered an opportunity for long term investors to grab shares at fairly attractive prices for a long term position. AFFJ

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