Recent Stock Purchase March 2017

Half way through March and my first buys have finally been made. It’s been a wild ride on the way up post election and the momentum doesn’t seem to have slowed down one bit. Sure, the ‘pause’ button may have been hit with the Fed planning of raising interest rates but looking out longer term it seems that the ‘Trump Bump’ remains intact. We already have seen which sectors are benefiting from the recent run up in the market and which are being left behind. Clearly, any time the Fed hints at raising interest rates we already can expect a sell off in the REIT sector and this time it’s no different. In my March 2017 Stock Considerations post I had mentioned a new consumer staple I was interested in picking up (HRL) along with Care Capital Properties, Inc. (CCP) in the health REIT space. Going back to my February considerations I also mentioned initiating a new position in LTC Properties, Inc. (LTC). With many consumer staples rising in recent weeks you could say I was ‘steered’ towards the REITs. With that being said:

 

I have added to my IRA account 20.0 shares at $24.27 for a total investment of $485.40 in Care Capital Properties, Inc. (CCP). With this recent purchase my IRA account holdings in CCP now totals 56.8825 shares for a market value of $1,378.26. This was a commission free trade.

 

I also initiated a new position in my IRA account adding 10.0 shares at $45.32 for a total investment of $453.20 in LTC Properties, Inc. (LTC). This was a commission free trade.

 

I realize that these two purchases may not be the most popular names on the block as REITs, especially the health REITs, have really been crushed in the last several months or so. Many stocks in the sector have come way down from their summertime highs as the whole health sector is seemingly under fire from government uncertainty impacting the industry coupled with the fact that interest rates are finally moving higher in a meaningful manner. While it’s difficult to buy stocks that are under pressure for the foreseeable future that’s precisely the best time to initiate and/or nibble on positions as better prices, values and yields present themselves.

 

What do you think about my recent stock purchases in the health REIT sector? While the near and mid term outlook for this sector looks dicey, I still think that longer term (years down the road) the sector as a whole will thrive. Please let me know your opinions below.

 

Disclosure: Long CCP, LTC

37 thoughts on “Recent Stock Purchase March 2017

    • Hi DL,

      I have certainly read enough posts about why O is overvalued and why it’s still a good play even at current levels. I don’t have O or any other type of REIT in my IRA because I like the health REITs the most for a long term play. Other than health REITs I also like apartment REITs like AVB and EQR but prefer the higher yields the health space offers for now. Nothing wrong with O, it’s just not my cup of tea long term. Similarly, you don’t see any tech nor energy in my current portfolio. Not that I’m against either industry, I just don’t feel compelled to own any stocks in those spaces at this time. Thank you for stopping by and commenting.

    • Hi ODOT,

      The government uncertainty wave along with Fed rate hikes is why we are seeing much better pricing, value and yields these days. OHI is another solid play in the space and very popular among our investing peers. That might be another name I am considering long term. As you can see from my IRA holdings I hold only health REITs, my favorite long term plays in the REIT section in general. As always, I appreciate your comment.

  1. I’ve been looking to make a purchase in the healthcare REIT sector too. I have some in mind that I like but I still think one particular one I’ve been monitoring (on my website) is still overpriced. I’m going to wait for it to drop and if it ever does. Then I’ll buy. Cheers
    Buy, Hold Hold recently posted…Your Post Here! Guest Post Wanted!My Profile

    • Hi BHL,

      I think with enough patience you’ll get the price you want in the health REIT sector. It’s still a very much unloved sector with a lot of near and mid term pricing pressure. As you could see with my recent buys, I did not go ‘all in,’ rather decided to nibble on these stocks. Of all the REITs, the health REITs are my favorite long term plays. Thank you for stopping by and commenting.

  2. As usual the markets always surprise me. It’s been pretty much a foregone conclusion that the Fed would hike rates and the REITs didn’t really do anything. That is until the 2nd half of last week when they started selling off hard. I guess maybe it’s the trajectory of the rate hikes that is spooking investors a bit. But that’s great news for long term investors. I need to take a deeper look at CCP to see if it warrants new capital investment. That 9% current yield sure is nice.
    JC recently posted…Net Worth Update – February 2017My Profile

    • Hi JC,

      The health REITs are certainly taking a lot of punishment as of late with rate hike fears confirmed and government uncertainty about the health industry in general from government payments and subsidies affecting REITs to drug makers’ pricing. It’s an industry I like long term and when no one is buying into the space currently I feel compelled to take a look and at least nibble on some stocks. By far, CCP is my highest yielding stock. As you know, I favor the lower yielding dividend growth stocks before the sky high yielding names. As always, I appreciate your comment.

  3. Interesting choices. They should both add a decent amount of passive income to your portfolio. Even though it has been around long and it’s difficult to track trends, are you nervous at all about CCP? With a 9.4% yield and it hasn’t increased it dividend since 2015 do you believe it may have to cut that in the near future? Payout ratio is still pretty good for being an REIT at least. However I do like LTC for the long term. Nice buys, thanks for sharing.
    Dividend Daze recently posted…Why Now Is The Best Time To Be An InvestorMy Profile

    • Hi DD,

      I’m not too worried about CCP at this point. It came into my portfolio via the VTR spin off and I decided to keep the shares and nibble a bit more recently. It will never be a large part of my portfolio which is why I feel OK adding a bit at this point and just holding. LTC is exciting for me as it’s my first monthly dividend payer and I have been reading a lot of good things about this name as well. Like CCP, I don’t plan to make it a large part of my portfolio and if you look at my IRA holdings you’ll see I’m spread out over several health REITs. Thanks for sharing your thoughts.

    • Hi MSF,

      As you can see from my recent buy, I have decided to nibble on LTC to start. I’ll be watching it going forward and may add more at a later date. For now, I plan to stay diversified among the health REITs, my favorite sub-sector of all the REITs that are out there. Thank you for stopping by and commenting.

  4. Nice pickups

    I also initiated a new position in my IRA account adding 15.0 shares at $45.32 for a total investment of $453.20 in LTC Properties, Inc. (LTC). This was a commission free trade.

    Am I missing something or is this a error seems like it should be 10 shares.

    Intresting how you and alot of the commenters are looking at health care reits. After my next buy (industrial) I wIll be looking at adding more to extendicare. I think it’s a great area to get more stocks with the baby boomers retiring.
    Passivecanadianincome recently posted…Stock Watch – March 2017My Profile

    • Hi Passivecanadianincome,

      Yes, that was an error on my part. I have changed the text to read “10.” Thanks for pointing it out. The health REITs are an unloved sector at the moment. There are some great yields and values in that space when compared to just last summer which is why you are seeing greater interest with these names. I still like the sector a lot long term despite all the near and mid term headwinds these companies may face. Thank you for commenting.

    • Hi MDD,

      The REITs, in general, have all been looking a lot better in recent weeks and will continue to face near and mid term pressures I feel giving us better buying opportunities of course. Nice pick up of MPW. That’s a health REIT you don’t really see in many portfolios. Not sure why. Looks like a good choice to nibble on to me. Thank you for commenting and sharing your recent buy.

    • Hi DG,

      CCP is my risk play among my REIT holdings, that’s for sure. It will never be a huge portion of my IRA and as you can see from my recent purchase I just nibbled on the stock. I see CCP in the same boat as OHI in terms of exposure to skilled nursing facilities and their uncertain future in terms of government exposure. Long term I still think both will be just fine and HCP as well. I continue to hold that stock. I would like to read about a dividend announcement from QCP though. It’s the one REIT I hold that does not pay me anything. I have a long term view for my IRA as I do with all my stocks. I think in five or ten years down the road the health REITs and my IRA should do alright and in the meantime pump out that passive income. As always, I appreciate your comment.

  5. Hut –

    There we go! At least someone is making moves, and now the fed increased rates again by another 25bps, which I’m sure will make a few banks happy. Nice job with REITs and deploying cash. Luckily they are smaller positions at the moment, and healthcare is always a fun industry – hint – we are getting older by the minute and the industry is going to be a constant!

    -Lanny
    Dividend Diplomats recently posted…No Choice but to RothMy Profile

    • Hi DD,

      No doubt the health industry, in all its forms, will be around for the foreseeable future. Of all the REITs, the health REITs are my favorite plays and I felt comfortable nibbling on some positions at this time as the whole sector has come under pressure in recent weeks. Each of my individual REIT holdings will never amount to a large portion of my overall portfolio but I do feel that some exposure is warranted in the space. I’m excited about the LTC addition as it is my first monthly payer in my entire portfolio. Thank you for stopping by and commenting.

  6. DH,

    I’m a fan of healthcare in general and recently picked up a REIT of my own, as you know. The runway for growth in this sector spans decades to come, in my view. Growing, aging populations, which all live longer and need care….

    As for the Fed raising rates, I think we’ll finally find out whether the recovery since 2009 has been for real or not if rates rise steeply. Consumers are deeply indebted and living on cheap credit at the moment.

    Take care,
    – Ryan
    Get Rich Brothers recently posted…What Did TD Bank Do Wrong?My Profile

    • Hi GRB,

      I totally agree with you about the long term prospects of the health sector in general, which is why I feel comfortable adding to my health REITs, medical supply/instruments and pharma stocks. It will be interesting to see the speed at which the Fed raises rates, though I suspect it will be very, very gradual for the foreseeable future. Thank you for commenting.

    • Hi GY,

      Glad you liked my recent pick ups. LTC is a stock I have been watching for a long time and I finally decided to pull the trigger and nibble a bit. As long as the health REITs remain weak I’ll continue to consider adding to my positions. Thank you for stopping by and commenting.

  7. I love REITs and think those are good purchases. No matter what purchases you make, there are flaws in the stocks. No such thing as the perfect stock. Build up those positions and you will be collecting some nice income. It is nice to get two sectors in one, Healthcare and Real Estate. I am a big fan of healthcare REITS. Kudos.
    -Brian
    Brian recently posted…February Dividends 2017My Profile

    • Hi Brian,

      I totally agree with you. There is no such thing as a perfect stock. Even when history and longevity and great value and yield make sense some scandal can come out of left field and blindside you. Just look at WFC in recent times. All we can really do is diversify and enjoy collecting those dividends in the meantime. Nice to hear that you too are a fan of the health REITs. Of all the REITs that exist, the health REITs are my favorite long term sector to invest in. Thank you for sharing your thoughts.

    • Hi WS,

      The only reason I’m looking at the health REITs these days is because they have been taking a hit for many, many months. I still think in the near and mid term time frame they will continue to be weak but longer term, which is my time horizon of at least another decade or two, I feel they will thrive. In the meantime, they all offer above average yield and I’ll happily add to my passive income stream while I wait. As always, I appreciate your comment.

    • Hi DC,

      Most publicly traded REITs have existed during time periods of higher interest rates and somehow managed to continue to pay out growing distributions along with growing share prices. I agree that a lot of the interest rate hike noise has already been priced in to many REITs which is why they are selling at much better levels these days when compared to just last summer. Nice to hear you are still on the REIT bandwagon. Thank you for commenting.

    • Hi P2F,

      CCP entered my portfolio via the VTR spin off and I simply held on to those shares. While I consider it to be one of my higher risk stocks in my portfolio, I do agree with you that in the long run it has the potential to perform very well. In the meantime, the distribution appears to be safe and I’ll take that high yield payout while waiting for prices to recover down the road. Thank you for stopping by and commenting.

    • Hi DaC,

      Thanks for sharing your recent pick up as well as health REIT holding. OHI is a very popular name among our investing peers. It’s another stock I am considering in the space along with NHI. My IRA is basically a “diversified” account among the health REITs, my favorite sub-sector of all the REITs. Thank you for sharing your thoughts.

  8. Great pick ups DivHut! I also bought CCP last week. I wouldn’t mind to continue building my position in OHI, CCP and maybe another healthcare REIT, if prices will stay depressed for longer. Thanks for the post and ongoing motivation.

    • Hi DR,

      Thanks for that vote of confidence with my recent pick ups. I know the health REITs are not that popular these days which is why I am continuing to look in that sector. I don’t plan to make CCP a large position in my portfolio but as long as it can afford that distribution and look attractive from a price/value perspective I’ll keep nibbling. As always, I appreciate your comment.

Leave a Comment

CommentLuv badge