The end of the month is an exciting time as it means the arrival of fresh capital that can be used to buy new stocks. This month I decided to load up on 20 shares of Omega Healthcare Investors (OHI), a US-based healthcare REIT specialized in skilled nursing facilities.
The REIT has a strong history of creating shareholder value, over the past ten years its share price has soared 168.85% while the quarterly dividend increased from $0.22 in late 2005 to $0.55 for the most recent payout. Outside of the strong fundamentals, one of the things I like about OHI is that the company has managed to increase its dividend nearly every quarter for the last couple of years! The stock currently yields around 6.40% and increases its dividend by about one cent per quarter.
Unfortunately, I could only pick up 20 shares this month as I need to set aside some money for a hefty property tax bill next month. Based on this quarter’s payout these 20 shares increase my total yearly dividend income by about 25EUR after taxes.
On a related note, the weekend started really good as Belgian lingerie maker Van de Velde announced an interim-dividend of 1.35EUR per share. I didn’t expect them to pay an interim dividend so this is a nice piece of extra dividend income for 2015.
Dividends are Coming 
Great purchase, DAC. I have been a OHI investor for a couple of years now and have been very happy with the performance. Its a great company and the demographics make for a strong investing case.
Good to have you as a fellow shareholder.
cheers
R2R
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Thanks, lets hope they continue to do as well as in the past 🙂
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Hey DAC,
It sounds like a great investment: If I do a quick calculation, you get about 4,17pct of net return?!? Am I correct? (25 euro/ 20* 30 EUR)
That beats a lot of other returns out there.
ATL
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Hi ATL,
The dividend yield is 6.4% at the moment so yes that’s 4.08% after the 15+25% in dividend taxes.
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Great buy with a long term tailwind. Of all the REITs I like the health REITs the best and hold the big three VTR, HCP and HCN. I have an eye towards OHI, NHI and LTC as well but have decided to focus on the the 3 I currently own for now. No doubt OHI has many years of growth in front of it and getting paid to wait doesn’t hurt either.
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Hi DaC,
Seems like a solid buy there. And last weekend did indeed start good with the dividend declared by Van De Velde.
Cheers,
Geblin
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Nice buy here. It seems like everyone is jumping on the OHI bandwagon recently. I only own HCP, so maybe it is time to diversify into another? Plus, it is down over 10% YTD. Can’t complain there. Way to go adding some serious dividend income to your portfolio!
Bert
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Hi Bert,
Thanks for stopping by. It’s indeed sometimes funny how everyone is buying the same stock at the same time 🙂 OHI has been on my radar for a couple of months and I couldn’t resist its tempting yield.
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