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.
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.
Thanks, lets hope they continue to do as well as in the past 🙂
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.
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The dividend yield is 6.4% at the moment so yes that’s 4.08% after the 15+25% in dividend taxes.
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.
Seems like a solid buy there. And last weekend did indeed start good with the dividend declared by Van De Velde.
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!
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.