Saturday, July 11, 2015

Omega Healthcare Investors: A Healthcare REIT That Under Promised And Over Delivered In The Last Decade

When I wrote my monthly update last Wednesday and had to write about my Seeking Alpha goal (writing 24 articles this year) I was actually feeling a little bit miserable about myself. I already had some valuation analysis done for Omega Healthcare Investors (OHI) and decided to put it in an article.

I have been a shareholder of Omega Healthcare Investors since December 2013. Back then I opened a position for roughly $30 a share. I was attracted by the consistent revenue growth in the past few years, high dividend growth rate and yield. This purchase has become one of my better buys in the past years with an annualized rate of return of almost 18%. I am contemplating adding to my position, but does that make sense when the stock has performed so wonderful the last 1.5 years? It must be overvalued, right? However there are some great companies like Johnson & Johnson, Colgate and Disney that constantly seem overvalued but still have the ability to provide great rate of returns for a shareholder. I am not comparing Omega to these companies in any meaningful way but still would like to investigate whether the current valuation merits a buy or not.

You can read the rest of the article here:

Wednesday, July 8, 2015

Monthly Update: June 2015

It's that time of the month again! A few days late but here's my monthly update for June. Markets lost a lot of ground, especially the Dutch AEX. But my portfolio definitely took a tumble this month. Down over 5%, with special attention to INTC (-11%), KMI (-8%) and TGH (-7%). In the table below I have presented some benchmark indicators of general market indices and my own dividend growth portfolio.

IndicatorAs of 30-5As of 30-6% change
S&P 500 Total Return3.8913.816-1,9%
Dow Jones Industrials Total Return36.47335.662-2,2%
AEX GR1.4611.403-4,0%
Portfolio value€ 24.890 € 23.631 -5,1%

However, since I am in it for the long haul I am not too interested in these daily or monthly fluctuations. What matters is that I keep focused on buying high quality companies which provide me with a steady stream of growing dividends. Too bad I don't have any capital available right now to pounce on some of the value the market is currently offering.