Recent Stock Purchase II January 2018

One week later and I made my second purchase for the month of January. Sticking with the theme of finding unloved stocks to buy and my January stock considerations list, I remained within the health REIT sector as 2018 proved to be a very rough start for many stocks in the space. Buying when others are selling usually plays out well for those with enough patience to weather the uncertainty of downward trends. With that being said:

 

I have added to my IRA account 19.3473 shares at $41.35 for a total investment of $800.01 in LTC Properties, Inc. (LTC). With this recent purchase my IRA account holdings in LTC now totals 29.7521 shares with a market value of $1,219.24.

 

As interest rate hike fears began to grip the sector and continued policy uncertainty from D.C. plagues the space, we are seeing much better buying opportunities not seen in a while. With three or four interest rate hikes remaining possible for 2018 it’s probably a safe bet to assume that the REITs will remain under pressure for the near and mid term. Of course, that simply means better buying opportunities for those willing to dip their toe into an unloved sector. Another benefit of buying into this sector is the super size yields now being offered as a result of consistent price declines.

 

What do you about about my recent purchase? Are any of you also considering stocks in the battered health REIT sector? Please let me know below.

 

Disclosure: Long LTC

18 thoughts on “Recent Stock Purchase II January 2018

  1. Hi Keith, I’m not familiar with LTC, but do like the REIT sector right now for the reasons you mention. I will also add that contributing to the disinterest in this sector is the fact that REIT’s will not benefit from the corporate tax rate reduction. As you likely know, REIT’s already operate tax free if they distribute the bulk of their earnings through dividends. The cut to the corporate tax rate provides little benefit. Tom
    Tom @ Dividends Diversify recently posted…As The Dividends Deluxe TurnsMy Profile

    • Hi DD,

      LTC is one of the smaller health REITs out there. A lot of income investors like this REIT because it is a monthly payer. Of course, with the recent bloodbath in the sector the yields are getting ever juicier. Thank you for commenting.

    • Hi Passivecanadianincome,

      The REITs continue to look very, very ugly these days. No one knows the future or absolute bottom but I’ll continue to nibble on this beaten down sector with my long term horizon. As always, I appreciate your comment.

  2. DHut,

    The healthcare REIT sector has a lot of promising stocks in it right now. Personally, I am not adding right now to those because they are already a bigger chunk than I would like.

    Congrats on the new buy. How about that 20% increase from YUM by the way?!

    – Gremlin
    Dividend Gremlin recently posted…Recent Buy, January 2018My Profile

    • Hi DG,

      The REITs are all in the doghouse these days which is why I continue to look at the stocks in the sector. Of course, that’s usually the best time to pick up some shares. Looks like a REIT will be a February buy for me as well. Love that YUM!!! Remember when that stock was crapped on with the meat issues they had in China. How things change in a short couple of years. Lesson: Stick with quality. Even the best companies stumble from time to time. Thank you for sharing your thoughts.

  3. I like the buy. I was torn between LTC and O when I made my last REIT purchase. Ended up going with O, as apparently did half the dividend community haha. Win/ Win either way since any company would have lowered my cost basis since I already own both. And they both provide monthly dividend income.

    • Hi DD,

      With enough time, I think most REIT purchases will pan out nicely, especially when buying at these beaten down prices. Like the O pick up! Thank you for stopping by and commenting.

    • Hi vivivanne,

      Not sure which stock you are looking at but LTC does pay a monthly dividend with a yield around 6%. I think you might be thinking of the QCP spin off. I’m still holding mine by the way. Thank you for commenting.

    • Hi Doug,

      There are many good choices these days. Can’t buy them all, right? I’m still watching the REITs for a potential buy this month. Thank you for sharing your thoughts.

    • Hi dividendgeek,

      The only REITs I hold are a handful of health REITs. They are not a large part of my portfolio and I am comfortable owning them for now. Of course, seeing them drop almost every day to new 52 week lows isn’t fun to watch but it does give those who want to nibble on these names much better prices and yields. As always, I appreciate your comment.

  4. Interesting buy! I have had them on my watchlist for a while but never pulled the trigger. I preferred O in stead but I’ll have another look next week when I’m researching my february buy.

    • Hi MR,

      You aren’t alone when trying to choose between O and LTC or other REIT names. The fact is there are many great REITs selling at discounted pricing these days and I suspect more of us will be buying names in the sector while prices remain depressed. Thank you for stopping by and commenting.

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