Time to get focused on my dividend growth portfolio for 2018. With more than three weeks of January already in the rear view mirror it’s time to make my monthly buy(s). As the market continues make new highs on a regular basis a lot of optimism about U.S. companies remains persistent. Of course, not every company or sector, for that matter, has participated in this climb. Looking at my January stock considerations I am reminded of a sector that seems to be facing a lot of near term headwinds due to interest rate hike fears. That sector… REITs, and more specifically the health REITs that also have a lot of uncertainty about policy coming out of Washington still in the mix. With that being said:
I have added to my IRA account 13.3673 shares at $59.85 for a total investment of $800.03 in Welltower Inc. (HCN). With this recent purchase my IRA account holdings in HCN now totals 74.6347 shares with a market value of $4,428.08.
It’s been a very, very long time since I added to any of my health REITs as most have performed quite well until last summer when their gradual decline began to take hold as interest rate hike fears began to grip the sector. While three or four interest rate hikes remain 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 HCN