Today I've initiated a new position. With €1.250 in fresh capital and some extra dividends I purchased 59 shares of Omega Healthcare Investors Inc (OHI). As I previously wrote, OHI is a Real Estate Investment Trust ("REIT") providing financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities located in the United States.
OHI currently yields 6.4% and this purchase will add roughly €80 to my annual dividend income. OHI is a dividend contender with a streak of 11 years of consecutive yearly dividend raises and a 5yr dividend growth rate of almost 10%!
I've compared OHI with other players in the REIT healthcare sector such as Ventas (VTR) and HCP. OHI is 5-6 times smaller in terms of revenue and assets. Based on Price/FFO, OHI is cheaper than others. However, based on 52wk high-low ranges and 5yr historic yield others have slightly more upside potential. It seems OHI sold off less in the last few months than other REITs.
OHI has shown consistent revenue growth in the past few years (~16% per year) so this amply covers the dividend growth rate. One of the reasons for this purchase is that I would like to get some (small) exposure to the REIT sector and also to some higher yielding companies. One of the best tips is to diversify through sectors, small/large cap, local/global, developed markets/emerging markets, etc. Yield diversification is another way of hedging your bets.
I probably have some capital left for a purchase next month. I am looking towards buying another EUR stock to decrease my (relative) exposure to the EUR.USD rate.
No comments:
Post a Comment