With the stock market marching ever higher in recent weeks finding great value and yield has, once again, become more challenging. Of course, challenging is a relative term as any long term investor knows we typically invest in a market of individual stocks rather than the stock market. With that being said, amazing value and yield can still be found in the energy sector, materials (commodities), certain financial stocks, such as any of the large Canadian banks and more recently the REITs. It seems that a strong jobs report is putting pressure on the Fed to, once again, talk about raising interest rates and as anyone knows, every time there is chatter about an interest rate increase, sensitive stocks, such as REITs bear the brunt of the “bad” news. So what does all this mean? It means we are presented a great opportunity to initiate or average down our costs on some solid long term REITs sporting sustainable and growing distributions. With that being said, let’s review my recent stock purchases in November.
Sticking to my November stock considerations I have added to my IRA account 15.9068 shares at $50.29 for a total investment of $800 in Ventas, Inc. (VTR). With this recent purchase my IRA account holdings in VTR now totals 43.6709 shares for a value of $2,190.10. With VTR currently yielding 5.82% it becomes difficult to ignore.
I have added to my IRA account 13.3848 shares at $59.77 for a total investment of $800 in Welltower Inc. (HCN). With this recent purchase my IRA account holdings in HCN now totals 39.6117 shares for a value of $2,352.93. Like VTR, HCN is currently sporting a very generous distribution of 5.56%.
I continue to believe that interest rate hike chatter will continue to hammer all REITs and not just in the health sector. The next month and a half or so may be a great time to continually nibble on this sector as lower prices, better value and higher yield will present itself in earnest.
What do you think about my recent stock purchase in the health REIT sector? What are you buying or planning to buy this month? Please let me know below.
Disclosure: Long VTR, HCN