Recent Buy

buyI’m incredibly fortunate in that cash flow this month has been really solid, which has allowed me to be quite active in terms of deploying capital and picking up shares in high-quality dividend growth stocks.

This most recent purchase wasn’t really planned, as it’s a stock that’s not on my watch list for this month. However, I always remain interested in opportunistically buying stocks on dips when the value seems to be notable enough to veer off track. Just like I might go to the grocery store with a list of food to buy, I’m also not going to pass up an incredible deal on dinner – even if it wasn’t a planned purchase – when it’s right in front of me. Might leave less capital on the table for other opportunities, but that’s the nature of the beast. Sometimes you take what the market gives you.

Now, dips in price aren’t necessarily indicative of a good buy – price and value aren’t usually one and the same. However, this stock seemed compelling both in terms of quality and value after a slow and steady drop in price of about 18% over the last three months. And so I pounced!

I purchased 15 shares of Omega Healthcare Investors Inc. (OHI) on 5/5/15 for $35.39 per share.

Overview

Omega Healthcare Investors is a self-administered real estate investment trust that provides capital and financing to the long-term healthcare industry, with a particular focus on skilled nursing facilities in the US.

After a recent merger with Aviv Reit Inc., the combined company has a portfolio of over 900 properties across 41 different states, operated by 81 different third-party operators. They are now by far the largest player in the SNF space, with more than two times the number of properties as that of their closest competitor.

They were founded in 1992.

Fundamentals

Omega might not be a household name, but they sport excellent fundamentals across the board.

First, we’ll take a look at growth over the last decade. It’s important to note that REITs, due to their structure, routinely issue shares to fund growth, so it’s important to take a look at growth on a per-share basis so as to determine the most relevant growth rate.

Revenue in absolute terms has increased from $105.8 million to $504.8 million from fiscal year 2005 to fiscal year 2014. That’s a compound annual growth rate of 18.96%. However, OHI’s share count increased from 52.1 million to 127.3 million, so revenue actually grew at a CAGR of 7.74%, which is still incredibly solid.

Now, earnings per share isn’t an accurate or meaningful way to determine profitability for a REIT because depreciation is usually a large non-cash charge for REITs, but real estate generally doesn’t depreciate over long periods of time. It instead usually appreciates. As such, it’s better to look at funds from operations when analyzing a REITs profitability, since FFO adds back in depreciation and amortization to earnings. You can read more about that here.

OHI’s FFO per share has increased from $0.78 to $2.71 over this period, which is a CAGR of 14.84%. That’s about as good as you’ll find in the REIT space in terms of long-term growth. That’s actually quite impressive in any industry.

I love investing in companies that are growing at this kind of double-digit clip, as it’s just not all that often you’ll find a high-quality company growing that fast. But OHI has managed to post great numbers fairly consistently over the last decade.

But it’s one thing to grow, and quite another to share that growing profit pie with shareholders in the form of an increasing dividend. In this regard, OHI definitely doesn’t leave shareholders hungry.

They’ve increased their dividend for the past 13 consecutive years.

Over the last decade, they’ve grown that dividend at an annual rate of 10.9%.

So the dividend has grown at a healthy rate, but conservatively in the sense that it’s below what the company can support and sustain – FFO per share has grown even faster. That’s led to a fairly healthy payout ratio of just 76.1%. As such, the company can easily continue to pay and grow its dividend.

What’s perhaps best of all is the yield, which is currently 6.1%. I’ve mentioned this before with other stocks that exhibit similar numbers, but a yield of over 6% and dividend growth in the high single digits or low double digits generally will generally lead to outstanding total returns over a long period of time – OHI’s total return from 2004 to 2014 is 586%.

I will quickly note here that OHI recently declared a prorated dividend due to the timing of the AVIV acquisition and the issuance of equity. All in all, the announcement still added up to a 1.9% increase over the payout in the previous quarter – the prorated dividend added up to $0.54, an increase of $0.01 over the prior quarter’s payout of $0.53. However, that $0.54 was paid out in two payments of $0.18 and $0.36 per share. That increase, by the way, is the 11th consecutive quarter in which OHI increased its dividend.

This prorated dividend seems to have confused some investors who assumed the dividend was cut, which is a good example as to why it’s important to double check with a company’s press releases whenever confusion arises.

OHI’s balance sheet is fairly conservative, which I also like. Total liabilities are $2.5 billion against $1.4 billion in shareholders’ equity as of the end of FY 2014. Debt/market cap is 30.5% after the acquisition of AVIV. Senior unsecured debt remains investment grade: BBB-/Baa3, with Moody’s just upgrading OHI. Furthermore, most of their debt is due between 2020 and 2025.

The company remains aggressive in terms of new investments, even outside the AVIV acquisition. In 2014, they closed on approximately $566 million in new investments. From 2004 to 2014, the company logged $2.7 billion in new investments to grow the company.

Qualitative Aspects

OHI specializes in long-term, triple-net leases with built-in rent escalations. Triple net means that the tenants pay all property related expenses, including real estate taxes, net building insurance, and common area maintenance. It limits the responsibility at the owners’s level, which is what I really like about these kinds of leases.

In addition, the weighted average lease maturity is 13 years. So those are very long-term leases which gives the company significant rental revenue visibility looking out over the next decade or so.

OHI basically provides the financing and specialization from a high level, while allowing the third-party operators to run the day-to-day operations at the facility level. This allows OHI to concentrate on financing and ownership, while collecting healthy rent in the process. So this is your classic landlord business model.

What’s truly wonderful is that the long-term demographics and economics are on OHI’s side. According to the US Census Bureau, the percentage of the domestic population that will be 85 years and above will more than double in percentage terms by 2050, from approximately 2% in 2010 to 5% of the total population in 2050. We all know that old age can bring about mental and physical challenges, increasing the odds that one will need long-term medical assistance. And with skilled nursing facilities having a major cost advantage over impatient rehabilitation hospitals and long-term acute care, the foreseeable future bodes well for OHI and their focus in the SNF arena.

Notably, OHI’s occupancy rate for certified beds was 84.3% in 2014, which is well above the industry average of 82.3% for last year.

The acquisition of AVIV adds a lot to like here. There’s only one overlapping top-ten operator across both portfolios (Diversicare). Meanwhile, AVIV adds 33 new operator relationships in total. And the acquisition reduces the concentration of top-ten operators from 69% to 52%. This combined entity is absolutely the 800-pound gorilla in this industry, which should allow their scale, expertise, and access to financing to assist in continuing to grow at an attractive rate.

Meanwhile, there’s still a lot of growth potential. OHI notes that the industry is $100 billion in size and heavily fragmented, with 87% of SNFs privately owned. So that’s a lot of potential meals for a very hungry OHI.

I find it unlikely that OHI’s skill and expertise becomes any less valuable in the future. It would seem that the demographics and long-term trends are absolutely indicating that the demand for the services of SNFs will only increase over time.

Risks

I see the major risks for OHI revolving around the very industry they operate in. A significant portion of their operators’ revenue is derived from government reimbursement, primarily through Medicare and Medicaid. Any major fundamental change there could impact the operators’ ability to pay OHI.

While OHI’s credit ratings are investment grade, they are lower on that scale. Any downgrade could cause their cost of capital to rise substantially. In addition, any rise in interest rates could negatively affect their cost of capital, though this is true for any business that relies on borrowing for growth.

Lastly, there is integration risk with the recent AVIV acquisition. This acquisition is incredibly large, so it remains to be seen how well the two entities work together in terms of synergies and growth. As it stands, OHI anticipates that the transaction will be immediately and significantly accretive to FFO.

Valuation

OHI’s P/FFO ratio is 12.46 after the recent slide, which I find incredibly attractive. The P/FFO ratio is comparable to the P/E ratio that one would use for C corporations. I will note, however, that the five-year average yield is 6.5%. But I think that just indicates the stock has gone from extremely cheap to less cheap. This stock was available for absolutely ridiculous prices with sky-high yields for a while coming out of the financial crisis. I regret not jumping on this stock earlier, with the initiation of my position occurring in January 2014.

I valued shares using a dividend discount model analysis with an 8% discount rate and a 4% long-term dividend growth rate. That growth rate is quite conservative as it’s less than half that of OHI’s long-term dividend growth track record, but I’m modeling in the fact that REITs require the heavy use of leverage and equity issuance to fund growth. The DDM analysis gives me a fair value of $56.16.

That price would put its P/FFO ratio closer to 19, which, when converted to a P/E ratio, is comparable to a number of companies growing at similar or slower rates on a per-share basis. As such, I think there’s real value here. Furthermore, OHI is currently guiding for $2.98 to $3.04 in adjusted funds from operations per diluted share in FY 2015, so the stock looks even cheaper on a forward-looking basis.

Conclusion

There’s just a lot to like here. Plenty of historical growth, an exciting acquisition, long-term demographic trends that bode well for demand, a low valuation, a juicy yield, and an experienced management team that has lived up to its promises. I’ve been a very happy shareholder since initiating my position early last year, seeing dividend increases in every quarter since I’ve owned it.

I don’t know if dividend increases will continue to be announced in sequential quarters like that, but I think this REIT is in an excellent position to grow its dividend at an attractive rate looking forward, based on the historical track record, growth opportunities looking forward, accretive acquisition, and moderate payout ratio.

This was a rather small transaction for me. I already had transferred capital over to my new TradeKing account prior to this purchase, and that capital was earmarked for another stock. So this was basically just a situation where I saw the opportunity and quickly transferred over capital to my Scottrade account where I had some free trades there waiting to be used. Looking back on it, I wish I would have transferred over a little more capital and picked up an additional five or ten shares, but I’m already being quite aggressive this month in terms of capital deployment as it stands. As always, opportunities outstrip capital. So many stocks, so little capital.

This purchase adds $32.40 to my annual dividend income, based on the current $0.54 quarterly dividend.

I usually include current valuation opinions from other analysts, but neither Morningstar nor S&P Capital IQ follow this stock.

I’ll update my Freedom Fund in early June to reflect this recent purchase.

Full Disclosure: Long OHI.

What are your thoughts on OHI? Think there’s value here? Like the fundamentals and growth opportunities? 

Thanks for reading.

Photo Credit: Stuart Miles/FreeDigitalPhotos.net

Note: Affiliate links included. 

Edit: Added information about Moody’s upgrade. 

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108 Comments

  1. What a great buy, I love REITs, and as I work in health care I understand completely how medicare/medicaid works and am looking forward to buying stocks and REITs in that sector in the near future when I begin purchasing. Great article yet again.

  2. Jason,

    OHI is a very good deal. You seem to have bought near the lows, but even at Friday’s prices it look attractive. I bought OHI, WPC and HCP last week also. I would be happy if prices go lower from here, similar to what they did in 2013. Interest rates can go up, but if demand for healthcare services space offsets that, you will come out ahead. Plus, for someone like us who will hold for the next 20 – 30 years, interest rates are not as important, as long as the business grows that pays us to hold.

    Best Regards,

    Dividend Growth Investor

  3. Nice little pick up, its great being able to feel free to pick up a small investment due to a free trade being available. I don’t think you would have had you not had it. OHI is in a few of my $US simulator accounts and has done just fine for me. And that yield! ~$34 in income off of a $550 investment is pretty good! Do you think having multiple brokerage accounts where your dividends will be arriving in different places will affect your stock purchases? Or will you just allocate funds different to make up for the established account receiving more income?

  4. I love your style, honesty and research. And most of what you talk about are relatively smaller investment amounts so you are talking talk that most of us really relate to. Here I am talking about purchases like 15 shares, or 25 shares, which are certainly doable for most of us.
    I am curious though as how you relate that to the commissions charged by companies like Scottrade. Here what I’m talking about is fee cost per share when only dealing with 15 shares for example. I would like to know your comments with regard this? I did read where this was done with a free trade through Scot, but when you run out of free trades (assuming you do at some point, or maybe not), does the fee cost per share get figured into your analyses somehow?f

  5. I love OHI, it’s one of my favorite REITs. Even though I just purchased some shares like a week ago, I’m considering doubling down this week because the price has just kept falling to very attractive levels.

    Great buy Jason! Enjoy the rest of your Sunday my friend 🙂

    Cheers

  6. Tyler,

    Good to hear from someone inside the industry! 🙂

    Yeah, the long-term trends are there. The demographic changes that are currently taking shape seems to indicate to me that the demand for long-term healthcare isn’t going anywhere when looking out over the next few decades. I like what I see.

    Thanks for the support!

    Take care.

  7. DGI,

    Yeah, OHI seems attractive even at a price point higher than what I bought in at. You’ve got a lot of consumer stocks that are trading for P/E ratios well above 20, yet here’s OHI at a P/FFO of around 12 with a yield of 6% that’s growing much faster than a lot of those other companies. I don’t know how you don’t look at that and find something compelling there.

    And I honestly don’t get the fascination with interest rates as it pertains to REITs. Their cost of capital rises just like any other company. They may use debt to fuel growth a bit more, but I’ve found a lot of research that shows they do well in rising rate environments. When rates are rising, that would generally indicate the economy is doing better. If shares take a hit because the yields aren’t as attractive, then that’s just an opportunity, in my view.

    Thanks for dropping by!

    Best wishes.

  8. DW,

    Yeah, the free trade worked out pretty well. I was earmarking around $500 or $600 this mark for a smaller purchase either way… but I was originally kind of looking at AAPL for that. If I didn’t have that free trade, then I probably would have to cough up more capital. That would then just be less for June. But my cash flow is fortunately looking pretty good this month, so I think I’m okay here.

    As far as having multiple brokerage accounts, that won’t really impact anything at all for me. I look at my total cash across all of my accounts and make purchasing decisions from there. Having some extra dividend income sitting in one account might mean I then feel comfortable with a little less cash sitting in the bank account, and vice versa. I’m cash agnostic. Some people like to put cash in all these different piles and think of it all differently, but dollars are dollars.

    Thanks for dropping by!

    Cheers.

  9. Hi DM,

    I made some purchases few months ago, and am looking to average down now.

    It is one of my best guess – I know you will buy OHI as it is more than 5% from recent high. Great strategy! Keep it up.

    Cheers,

  10. Gary,

    Right. I don’t make some huge salary, which is why you see me investing the way I do. I wish I could invest $5k or so a pop, but it’s not in the cards. Fortunately, it’s also not necessary for me to achieve financial independence at a relatively early age.

    That said, this small of a purchase is somewhat rare for me. I’ve built up most of my funds in my Scottrade account, where the commission is $7 per transaction. As such, I’ve tried to make sure that, historically, my purchases have ranged around $1,400 or so so as to limit my total transaction costs to 0.5%. I find that to be a number I can work with during the accumulation phase while also keeping in mind that fees will be almost non-existent during the period when I’m living off of dividend income (a much longer period in terms of total time frame).

    I just recently opened a new account with TradeKing where commission fees are $4.95. So I’m okay lowering those transactions down to $1,000 or so, which keeps the commission in percentage terms the same.

    Hope that helps!

    Best regards.

  11. I bought OHI on Wednesday this past week and it popped up 4% already.

    I have been really enjoying your blog and the joys of dividend investing.

    This will be a big week for dividends for me because of AAPL.

    Time to start planning my next purchase….

  12. Dividend Mantra,

    Nice buy.. The REITs with their high yield provide monthly cash flow that helps us investors investor more frequently. Get paid every month to add to the fresh new capital to buy more to provide my cashflow. I own some REITs myself and love their cash flow.

  13. It sounds as if you have picked up a decent stock here. A dividend yield of 6.1% cannot be passed up especially in a company with solid dividend history. I hope you add to your investment in this stock over time.

  14. ZTZ,

    I’m with you here. I wish I would have picked up a little more. I could have stretched for it, but I always remain pretty conservative in terms of keeping at least a few grand on hand. But continued rumors (or fruition) about interest rates rising could provide more opportunities. I’ll be there waiting, as I’m sure will you. 🙂

    Best wishes!

  15. FJ,

    Yeah, this is actually one where I averaged up. But I’m okay with that. The business is doing even better now than it was early last year. I definitely wouldn’t mind owning even more at some point. We’ll see what kind of opportunities come my way. 🙂

    Thanks for stopping by.

    Cheers.

  16. sfmitch,

    Nice move there. Looks like we bought right around the same time. Great minds think alike. 🙂

    Have fun shopping. I’m sure many investors, especially long-time holders of AAPL, are really looking forward to that next payout, especially after the recent raise.

    Best regards!

  17. IP,

    Well, OHI pays quarterly. I think most US-based REITs pay quarterly like that. O is one that pays monthly, which I think adds to its popularity/appeal. But quarterly is still more than often enough to reinvest and have capital coming in fairly regularly, especially if you’re diversified across multiple businesses/industries.

    But that 6%+ yield coupled with the incredibly strong dividend growth means this one should add some healthy income for years to come. 🙂

    Cheers!

  18. DE,

    Awesome. Glad to be a fellow shareholder here! 🙂

    I like OHI. I wish I would have initiated a position in this stock way before January 2014. But I think I got in at a good long-term value either way. And the recent drop over the last few months definitely piqued my interest here, at least enough to add some more to that position. And I’ll be happy to add even more if the valuation and capital align.

    Thanks for dropping by!

    Best wishes.

  19. Laura,

    It seems to be pretty solid from where I’m standing. Anything is of course possible, but the long-term trends bode well. And they’ve obviously done right by shareholders going back many years now. We’ll see how it goes, but I’d love an opportunity to add more at some point. I kind of wish I would have bought a few more shares here, but that’s just more capital for something else.

    Take care!

  20. Starting with a large yield like that and strong dividend growth it seems like one I should take a closer look at. Usually I tend to shy away from stocks that took a bad beating in the past like OHI did between 98 and 01. Any reason the stock fell so much during that time? Interest rates didn’t go up much at the time so I can’t see that forcing the stock from $40 to under $2. Thanks for the update.

    I tried commenting with email/name/website but it never went through. :-/

  21. Jerry,

    Well, I do know that OHI suspended its dividend during that time to focus on servicing debt. I came across some information that states that their credit ratings back then were cut and they were having liquidity/flexibility issues. In addition, the stock was probably riding the wave that was the end of the dot-com bubble, which took a lot of stocks down with it. I’d also be willing to bet that the stock was wildly overvalued at the beginning of that period, as a lot of stocks were. So there’s a lot going on there. Nonetheless, what an opportunity that would have been to buy OHI at around $2 per share.

    But I see a company today that’s a lot larger and a stock that isn’t grossly overvalued. Tough to compare two very different periods.

    Hope that helps!

    Cheers.

  22. Hi.

    How do you feel about Motif Investing?

    Would like to pick 30 quality dividend stocks. One stop shopping and a diverse portfolio from the start. All with a modest initial investment.

    Any thoughts?

    Thank you.

  23. Robert,

    I’m going to copy and paste an answer I just recently gave on this same exact subject so as to save time:

    Motif seems kind of gimmicky to me. You get to buy up to 30 stocks all at once for $9.95, but you then have to pay $4.95 thereafter to buy/sell (which is the same as what my new account at TradeKing charges) any stocks within your motif. But could I find 30 stocks right at this minute that I’d like to buy all at once? Definitely not. So I’d be buying a lot less than 30 at one time. And then adding/subtracting from there is still that $4.95.

    I suppose you could find a few stocks every month you want to buy and pay $9.95 for all of them in a basket, but you’ll want to make sure you’re actually looking at all of these stocks and making sure they fit your criteria. And then once you build your motifs out, you’re still looking at that five bucks to add/subtract. To buy a big group of stocks all at once in the name of diversification but ignoring analysis/valuation would be the same as just averaging your way into a fund, in my view. And spending $10/month in that example is probably pretty similar to what you’d be paying anywhere else. Motif is really just putting a different spin on it.

    I don’t think “a diverse portfolio from the start” should be a substitute for valuing individual stocks. If I wanted diversification right from the get go, I would have just invested in funds. But I bought individual stocks all the way along and eventually amassed what you see here. I think too often people lack patience, which is what oftentimes gets people in trouble when it comes to buying stocks in the first place. So be careful there.

    Hope that helps!

    Cheers.

  24. Thank you for taking the time.

    Just starting out. I have a Scottrade & TD Ameritrade account. Can only invest about $500-750 per month. So it takes 2 months before I can buy to keep the fees low. Only have 4 stocks right now.

    Slow and steady wins the race. Just have to focus.

    One more for you.
    Do you like the Roth option in a 401k or traditional?
    I’m doing 15% pre. If I switch to Roth I think I could only do 10% after tax to keep my budget in place.

    I feel like accumulating shares is more important to me right now than tax free down the road. Once I hit 50k pre I will switch to the Roth.

    I won’t take up anymore of your time. I am inspired by you, your blog and your journey.

    Thank you.

  25. Robert,

    You’re not taking up my time. I’m happy to help. I only copied and pasted because I can’t answer that question any better than I already have.

    In your situation, Motif won’t really help. Spending $10 to buy 30 stocks with a total of $750 is not necessarily better than focusing that $750 on one stock at $7, and in fact is probably worse. Not only would you be spending more absolute money with Motif, but you might be sacrificing value and quality in the name of diversification. I’d recommend taking your time and valuing each stock individually. Just buying stocks en masse means you’re not really looking at what you’re buying. Furthermore, you might be better served by seeing if there’s a way to increase your monthly capital to lower the commission fees as a percentage on the transaction. Finally, you might want to look at some low-cost options out there like Computershare.

    I’m not sure I’m the best person to ask about the other issue. I don’t use any tax-advantaged accounts at all, choosing instead to maximize liquidity and access to my wealth/income ASAP. Not really a strategy I’d recommend for everyone/anyone else, but it works for me. For most everyone else, I’d recommend maxing out the tax-advantaged accounts that make sense for your situation, taking matches when and where possible. I find the Roth to be one of the most flexible and valuable of all accounts due to the ability to easily withdraw contributions.

    Cheers!

  26. NIce purchase! I really like OHI as a company and a business. The aging population is only going to increase the revenue that this company produces.

    Nice job picking them up at a much cheaper price than just a short time ago!

  27. ADD,

    I’m with you 100%. The demographic trends definitely seem to bode well here. There’s a really long runway for growth here, which I’m excited about.

    And the massive pullback over the last few months just incentivized me to pick up some more shares here. Gotta be ready to pounce when those opportunities arise. 🙂

    Best wishes.

  28. DM,
    Nice buy! OHI will be joining my portfolio soon as well. Ive noticed that you are using 8% as your discount rate on a few companies lately. Why is it that you are only requiring 8% return on this REIT?

    I typically don’t run my valuations below 9% so I’m fishing for your opinion here.

    Nice job adding to the snowball!

  29. Patrick,

    Yeah, I use a discount rate of 10% for most stocks. I started to change that a while back for higher-yielding stocks to account for the time value of money. So I’ll use a 9% discount rate on a stock with a yield of 4% to 4.99% and a discount rate of 8% for anything yielding 5% or over. And that’s because if all else is equal, I’d much prefer a stock with a yield of 5% and a growth rate of 5% rather than a stock with a yield of 2% and a growth rate of 8%. Now, all things are rarely/never equal, but I use a lower discount rate to account for that time value of money (the value of more money now) and my preference for more income – more income means I reach FI even faster. I’d even accept less growth in that first example, which is why you see the discount rate where it is. Nonetheless, the margin of safety is so wide and the growth rate so conservative, that it’s almost a moot point because OHI will likely far exceed that hurdle rate.

    However, you could use a 10% discount rate as well here. That would infer the stock is roughly fairly valued. However, I was quite conservative with the dividend growth rate. A rate of 6% (still well below what OHI has managed over the last decade, and what they’re likely capable of moving forward) would give you a fair value pretty close to what I came up with. It all depends on what you’re comfortable modeling in.

    Hope that helps!

    Best regards.

  30. Mantra,

    You have just been on a tear! Looks like you’ve more than likely hit over the 200K mark into this month, a milestone as well. That’s a great health care REIT, whom have taken a beating lately, so great job taking advantage when opportunity arises!

    I’m looking to make a purchase this week, waiting on a few funds to transfer over, so I’m hoping that sooner than later.

    -Lanny

  31. Hi Jason/Sensei,
    I bought 10 shares of OHI at $38.xx and then 20 more at $36.xx for my wife’s and my IRA accounts in early April. Thanks for the affirmation! Keep up the excellent work and happy birthday.
    Regards,
    Tom

  32. DM,
    As ways I appreciate the detailed response.

    Is there math behind your cutoffs or are they somewhat arbitrary?

  33. Geez, you can’t even slow down, can’t you?

    I’d love to get my hands on this one. I have a very small position in LTC but I definitely like what I see here. “Unfortunately”, I just initiated a position with WPC and CAT as well as added to my JNJ position, so it’s going to be awhile before I can add any fresh capital to my account (“awhile” being measured in months). It sucks being underpaid.

    That snowball is getting bigger and bigger.

    Sincerely,
    ARB–Angry Retail Banker

  34. Lanny,

    I’m doing my best to keep my foot on the pedal over here. No doubt about that. 🙂

    Can’t wait to see what you end up buying. Have fun shopping out there!

    Best regards.

  35. Tom,

    Nice move averaging down over there. That’s the way to do it. If you like it at $38, you should love it at $36. 🙂

    Happy to be a fellow shareholder!

    Best wishes.

  36. Like the buy here DM! It’s been very hard to watch the decline in OHI without getting to add some shares. By the time I had capital available the share price for REITs across the board had recovered. The current share price doesn’t offer quite as much value as before but there’s still solid long term value at current prices. I’ll probably end up adding shares of either OHI or VTR soon assuming the share prices don’t continue to climb and then maybe add another REIT to the mix as well. Thanks for the update.

  37. Patrick,

    The math is there. The 10% discount rate is generally my hurdle rate, or what I’m looking to achieve in terms of total return. And that’s more or less in line with what equities return over the long haul. So I feel comfortable with that line in the sand, while also trying to buy in with a margin of safety as often as possible. A 10% rate on a stock yielding, say, 3% would mean that long-term dividend growth is 7% for it to be roughly fairly valued. I then scale that back one percentage point above 4% yield and two above 5% yield because it’s equally up the scale of yield there.

    But you’ll really have to find the numbers that work best for you. Valuing stocks is part art and part science. But over time I found that I was having a hard time making the numbers work for a lot of high-yielding stocks that were also still high quality, and I certainly value that income from the standpoint of getting to where I want to be in terms of passive income. Using a 10% discount rate would probably mean you’re not looking at a T or an O at all. The numbers just don’t work. And one has to really discover for themselves how they value that income from the standpoint of the time value of money.

    Cheers!

  38. ARB,

    Ha! The words “slow down” are not in my vocabulary. At least not when it comes to achieving financial freedom. 🙂

    Those are some great stocks there. I’m not familiar with LTC, but you really can’t go wrong with the likes of WPC and JNJ. Great companies there. And I’m sure you’ll be loading up that BB gun before you know it!

    Thanks for dropping by.

    Best wishes.

  39. JC,

    Some of the REITs have already recovered a bit, but OHI is still in that wheelhouse. It’s less than $1/share away from where I recently picked up more, so I think there’s plenty of value there. And the yield is right around that 6% mark right now, which is just wonderful. I wasn’t so enthusiastic at $42/share, but this level around $35/$36 is just right where I want to be. If it drops significantly from here, I’d be a buyer again.

    I’ve recovered my REIT exposure a bit now after the ARCP sale, so I’m hopeful I can add another name or two to the mix. I definitely wouldn’t mind picking up one more REIT from the healthcare space, though I haven’t run across one with the value and yield that OHI presents right now.

    Best wishes!

  40. DD,

    Sounds like a plan to me. Tough to find a lot to dislike here about OHI. There are some risks there, notably in terms of Medicare/Medicaid reimbursement and budget cuts. But, overall, I love the value, quality, yield, and growth here. We’ll see how it goes!

    Thanks for dropping by.

    Best regards.

  41. Like all the other comments I gotta say that I’m liking the OHI buy. Just last week I added the big three health REITs to my IRA and still looking at other names, NHI, OHI and LTC for some smaller companies that offer more growth potential. Just as I got turned on to the Canadian banks I think I’ll be focusing my attention on the REIT space if market conditions remain the same. Seems like all REITs have fallen out of favor in recent weeks. Thanks for sharing.

  42. I was going to have a little break from investing, but ended up picking up 100 stocks of OHI in recent dip.
    What can I say, I’m addicted to stock purchases and dividends 🙂

    Good luck to you and other fellow shareholders!

  43. Nice purchase, Jason.
    Ive owned OHI for a while and really like the company….its a riskier investment compared to the other healthcare REITs, but the investors are rewarded well. You’ve managed to buy at a very attractive level – I just finished an evaluation last week and found that its very attractively value.

    Best wishes
    R2R

  44. I am happy to see you picking up more REITs. I am starting a small position in WPC tomorrow.

    I was wondering if you can explain the Kraft situation and the special dividend to us newbies?

    Also Congrats on the success of your book! I love the transparency and tone that is set from the first page. Your honesty is refreshing in this world. (Can’t wait for the sequel!)

  45. DH,

    I’m with you. If a sector or certain stock is out of the broader market’s favor, then it’s probably in my favor (assuming the quality is still there). And OHI definitely fits the bill there.

    Have fun picking up those REITs! 🙂

    Best regards.

  46. Kostaja,

    Ha! I know exactly what you mean. I can’t recall how many times now I thought I’d be a bit light in regards to purchasing stocks in any given month because of lack of capital or something else, but ended up going at it 100% anyway. Certainly glad about that now from a cash flow perspective, and I suspect you’ll end up in the same boat. 🙂

    Thanks for sharing!

    Cheers.

  47. R2R,

    I agree. I think their focus on SNFs increases the potential risk and reward. And that’s probably why I’ll end up owning at least one more healthcare REIT, as OHI isn’t very diversified on that front. But I also think there’s something to be said about doing one thing and doing it better than everyone else. 🙂

    The value is definitely there. I averaged up on this one by a good measure, but I have no problem paying more down the line because improved operations warrant it. That’s what I hope to see with all of my holdings over time.

    Thanks for dropping by!

    Best regards.

  48. Mike,

    Thanks so much. Really appreciate the support and readership there. And I’m so glad you enjoy the transparency. Staying as transparent as possible is something I set out to do right from the beginning because I find that too often people are guarded around the topic of money, and those barriers make it hard to have an honest discussion that can benefit everyone.

    As far as the Kraft dividend goes, I’m not a shareholder. As such, I haven’t been following the special dividend news all that much. But the press release seems to spell it all out pretty nicely:

    http://news.heinz.com/press-release/finance/hj-heinz-company-and-kraft-foods-group-sign-definitive-merger-agreement-form-k

    Cheers!

  49. Fundamentals seem to be in line with the risk/reward overview that you summarized pretty well. I think you’re spot on that the biggest risk is likely from the regulatory/agency end if the health payment system has any changes which will cause a change in demand for the facilities in the future.

    Everything has some type of risk, and this one is certainly material, but it’s either a hit or miss. Maybe that happens, maybe it doesn’t. Like most things in this world, it’s probably somewhere in between. Cost controls in the health system are certain, but we just don’t know how/when that will materialize. In the interim, I’m sure you’re happy to collect your profits! 🙂

    The whole pure play vs diversified stock is a debate for the ages. Given VTRs upcoming move, I think others in the industry seem to believe this allocation makes more sense be separate from other property types. Perhaps a meaningful difference in equity value given some sort of divergence in cost of capital, growth, or something else compared to other health related property sectors?

    Fortunately with over 50 other holdings, you can diversify on your own and don’t necessarily need each company to do that.

    It’s on my watchlist along with VTR. Both are really solid with 7%+ payout growth in the past few years. Now I just need to find the cash!

  50. Jason – not sure if anyone has already asked this above, but how did you arrive at 6% dividend? Several websites quote it at only 2%, and SeekingAlpha puts it 1.99. They pay 0.72 annually, which is at 2% based on the current stock price. Just curious – am I missing something?

  51. Ravi,

    “Fortunately with over 50 other holdings, you can diversify on your own and don’t necessarily need each company to do that.”

    That’s exactly how I feel. The question of diversification at the company level becomes more pertinent when you’re investing in, say, 20 or 30 companies, but becomes less of an issue once you’re diversifying out across the entire economy via four or five dozen high-quality businesses. The SNF play seems to be intelligent in terms of the cost advantage, but I’d still like to have some further exposure to other aspects of long-term care. We’ll see.

    VTR seems like a good play as well, especially with that spin-off. Although, OHI sports a much higher yield, better dividend growth numbers, and a lengthier dividend growth streak. I’ll take a closer look at VTR here pretty soon to see if it’s particularly compelling.

    Best regards.

  52. AlexG,

    It seems some investors aren’t really looking past an initial stock quoting service, which is a big mistake. I’d caution against that here and at all times in the future. This question/confusion is exactly why I wrote the following paragraphs in the article:

    “I will quickly note here that OHI recently declared a prorated dividend due to the timing of the AVIV acquisition and the issuance of equity. All in all, the announcement still added up to a 1.9% increase over the payout in the previous quarter – the prorated dividend added up to $0.54, an increase of $0.01 over the prior quarter’s payout of $0.53. However, that $0.54 was paid out in two payments of $0.18 and $0.36 per share. That increase, by the way, is the 11th consecutive quarter in which OHI increased its dividend.

    This prorated dividend seems to have confused some investors who assumed the dividend was cut, which is a good example as to why it’s important to double check with a company’s press releases whenever confusion arises.”

    Hope that helps!

    Take care.

  53. DM, excellent buy. I have been reading up to add REITs to my portfolio. My simple screen tells me to research HCP, OHI and WCP. Apart from getting the FFO info from reports (M* and s&p cap iq), or calculating from the balance sheets, do you know of any good sites with REIT specific ratios?
    D4s

  54. Div4son,

    That’s a good question there. I’ve never actually ran into a site that calculates REIT ratios separately like that. Not real sure why the major financial sites can’t get it right with REITs, but I also don’t find it particularly difficult to pull up a few reports directly from a company’s investor relations site and see the numbers there. There’s probably something out there that does this, but I’ve never really taken the time to try to find one. If I run across something, I’ll definitely come back here and let you know! 🙂

    Cheers.

  55. Tawcan,

    OHI’s back down near the price I paid after today’s little drop. I think there’s plenty of value there. Definitely wouldn’t mind buying another tranche if it goes even lower. We’ll see.

    Happy to be a fellow shareholder!

    Best regards.

  56. Dividend Mantra,
    Your recent stock purchase was a great one! OHI has been on my watch list for a while now…I think I’m going to pick some up when I get some fresh capital. Thanks for sharing.
    Take care
    -LOMD

  57. As a shareholder, I definitely like the purchase. I am definitely considering increasing my positions but I feel like I am currently heavy on REITs and I think I would rather spread my money out some more before I double down.

    -ABM

  58. Hi Jason,

    Nice buy. I have my eye on WPC and STAG, but I have already fully used up my dry powder in my Roth IRA. I know you hold Reits in a taxable account, which I may do here. I did some reading and it looks like they are taxed at your ordinary tax rate, plus a 3.8% surtax. Can you comment if that is your understanding as well?

    Also, thanks to you sharing your recent BRK meeting experience, I decided that I would see what companies Annual meetings I could go to. I work in NYC, and a few of the companies that I own have their headquarters there. I ended up going to the Colgate meeting, and it was fantastic! It was right next to my work, and the gift bag with their new products was great. The best part was the Q&A when a lot of interesting retirees asked random questions about the products. Anyways thanks for the inspiration to go. I might attend the Blackrock meeting later this month too, but I heard there is no gift bag 🙁

  59. Hello. I looked this REIT up on Yahoo Finance and it lists a 2% dividend. Can you explain what I am missing? Thank you

  60. LOMD,

    No problem. Glad I could help! 🙂

    Looking forward to being fellow shareholders. I imagine we’ll both be enjoying that extra dividend income for many years to come!

    Take care.

  61. ABM,

    I totally hear you there. I’m in a similar position in regards to my energy exposure. I’d just have to really see better prices/valuations in order to get all that excited about going any heavier than I am, which is really already far too heavy for my liking.

    But it’s a big stock market out there. Lots of opportunities across the spectrum. 🙂

    Cheers!

  62. presone,

    That 3.8% surtax is the Net Investment Income Tax, also known as the Medicare surtax. It’s not specific to REITs. If you’re in a position of exposure there, it’s because your income is off the charts. A wonderful first world problem to have, no doubt. You can read more about it here:

    http://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs

    Glad you had a great time at the Colgate annual meeting. I hope to be in a position to attend another meeting at some point in the future, but this area of Florida just isn’t well located for that type of stuff.

    Best wishes!

  63. PR,

    I explained that in the article:

    “I will quickly note here that OHI recently declared a prorated dividend due to the timing of the AVIV acquisition and the issuance of equity. All in all, the announcement still added up to a 1.9% increase over the payout in the previous quarter – the prorated dividend added up to $0.54, an increase of $0.01 over the prior quarter’s payout of $0.53. However, that $0.54 was paid out in two payments of $0.18 and $0.36 per share. That increase, by the way, is the 11th consecutive quarter in which OHI increased its dividend.

    This prorated dividend seems to have confused some investors who assumed the dividend was cut, which is a good example as to why it’s important to double check with a company’s press releases whenever confusion arises.”

    Take care.

  64. Thanks for this article. I like your approach of buying whenever you feel it’s a good buy. I’ll continue to monitor OHI for a couple of days and will buy it also.

  65. Hello DM,

    Thanks for your thorough and clear analysis (as always). I like to read them and I cant find much fault in it:) The only thing that (to me) the debt level looks on the high side to me. I found a Dutch REIT that is about 1:1 (although it doenst seem to grow much). Maybe that is also the fear of the market, if rates go up that would mean higher finance costs for OHI thus less net income. Otherwise if rates go up (signalling a strong economy) that probably also means a chance to increase rates in some way or to improve occupancy.
    Keep up the good works (and espy the dividends)

  66. One nice thing about REITs is that you can have a significant exposure to them without adding too much risk to your portfolio. For example, the Yale endowment fund is managed with a 17% stake in real estate and it has been extremely successful! It has averaged 13.9% per year for the past two decades.

    One bad thing about REITs in a taxable account is the extra taxes! If you are in the 25% bracket you can multiply the yield of a REIT by 0.9 to get the tax equivalent equity yield (0.87 if in the 28% bracket, etc).

  67. Where to you look to find a REIT’s FFO? I know on morningstar you have to calculate it manually.

  68. Yeah, I agree rising interest rates are an overblown fear. And companies like OHI are not bonds. But I would be happy when everyone is fearful, and prices go lower due to fears. Better entry prices, mean more dividends and more cash to finance my lifestyle 😉

    Good luck in your investing!

    DGI

  69. Dear DM,

    May I confess one thing to you? I did copycat again. I initiated an OHI position in my portfolio. Specifically my limit order of 100 [email protected] was executed today. This time several dividend bloggers including you said that OHI was a kind of bargain now and I couldn’t agree more, so I acted.

    By the way, how do you about MetLife (MET)? It recently raised its quarterly dividend (three years in a row) to 2.83% yield as of now. Payout ration is just 26.3% and free cash flow to dividend is 6.7.
    I recently read an article about Aflac and it said that there is a management upheaval ( removed a legendary Japanese former CEO) and that some big agencies are concerned about Aflac management team. Japan is rapidly aging and getting poorer. As a result insurance market has become extremely competitive – lower margin. Aflac’s high dependency on Japanese market really concerns me. Met on the other hand seems to me more diversified in terms geography.
    Disclosure : Long MET

  70. Adam,

    No problem. Hope you found some value in it! 🙂

    If the value is compelling, the quality is high, I have capital, and there’s room in the portfolio, the odds are pretty good that I’m a buyer. And OHI checked those boxes for me. We’ll see how it goes.

    Cheers.

  71. OJ,

    Thank you for your thoughts. 🙂

    I don’t have a problem with OHI’s absolute debt level. But its credit ratings could be improved. The good news is that Moody’s just upgraded them, which is a move in the right direction. Interest rates will affect cost of capital, but most of their long-term debt is due out years from now. I’m not particularly concerned. And you’re right in that rising rates likely means the overall economy is improving. After all, people aren’t going to make the choice as to whether or not to stay at a SNF based on interest rates, right? I think OHI will be fine.

    Best regards.

  72. Patrick,

    I’ve heard the Yale fund has done really well over a long period of time. I read an article a while ago on their asset mix. If I remember correctly, they were into all kinds of stuff. But you can’t argue the success.

    As far as taxes go, I’m not real concerned. The taxes are probably a slight headwind during the accumulation phase (depending on your bracket), but really not much of an issue once you’re living off of your dividend income (assuming you’re within the 15% tax bracket). If your passive income is so high that you’re bumped up a bracket or two, then I’d think your sitting on a pretty good first world problem there. As always, I’d rather have a tax problem than a revenue problem. But you can earn significant dividend income (including REIT dividend income) before really facing much of a tax burden at all.

    Best wishes.

  73. Justin,

    The best place to look is a company’s own financial statements. Other than that, Seeking Alpha generally publishes quarterly FFO statements for most major REITs. I had to manually calculate the FFO going back 10 years because I couldn’t find it on a per-share basis, but it only takes a second to do the division.

    Cheers!

  74. DGI,

    “But I would be happy when everyone is fearful, and prices go lower due to fears. Better entry prices, mean more dividends and more cash to finance my lifestyle.”

    Couldn’t have said it better myself! 🙂

    Best regards.

  75. DS,

    MET is really outside my universe since it hasn’t increased dividends for at least five consecutive years. Aflac has done so for over three straight decades. So it’s really not even a comparison. In addition, they have far different exposure to the US and Japan, so it’s tough to compare the two. And they market their products differently. That said, I agree with you in terms of Japan becoming more competitive and a less attractive market. So I suspect that Aflac will have to start to diversify itself away from that at some point in the near future. As such, I think that in and of itself provides a lot of potential upside. But MET has been somewhat inconsistent over the last decade or so. It’s just really not on my radar at all.

    Cheers!

  76. DM,
    I agree! During my accumulation phase I expect to be in the 25-28% brackets but will live in the 15% bracket when I’m FI. I will buy some REITs in the near term but I plan on accumulating them more aggressively when I get close to FI.

  77. I’ve read many OHI articles lately but yours is the most complete and detailed so far! 😉 Not surprised though! hehe

    Great company indeed, congrats on that adding Jason.

    Cheers,

    Mike

  78. Mike,

    I do my best with the analysis. 🙂

    Definitely a lot to like here. Not too often do you see a yield of over 6% and a growth rate in the double digits. Really compelling stuff. Even if growth drops in half, I’ll very likely be pretty happy with this over the long haul.

    Best wishes!

  79. I’m not too concerned over AFL. You do bring up interesting points about the Japanese exposure and demographics AFL faces in the coming decades in terms of competition and declining margins, however I agree with DM that just leaves new opportunity for AFL to diversify into other markets. AFL is my largest holding among all my accounts.

  80. Great purchase and analysis, Jason. I think those that said you didn’t need fancy charts or graphs to make your precise and detailed point put it best. You have such an appealing way of writing about business that make these posts such a pleasure to read. So happy to be a shareholder with you in this name. I can hardly keep up with the pace you’re putting out articles lately, which is the best problem one could hope for! Hope all is well and please keep at it my friend!

  81. I know about AFL’s great truck record and if not for Japanese market, I could have initiated an position of AFL years ago.
    MacDonald in Japan is under a terrible situation now. These days I personally observe many empty seats in MacDonald’s restaurants here. Although I admired MacDonald’s as a dividend growth stock, I sold my entire position about three months ago.

  82. Hi DM

    I have researched OHI and I seem to be getting very different numbers than the ones you write in this article.

    You write that OHI has a yield of 6.1%, but Yahoo Finance says 2% yield, while Morningstar shows 4.4%.

    With regards to the payout ratio you write that it is 76.1%, but both Yahoo Finance and Morningstar say 150%.

    I am puzzled, where did you find your numbers? And which ones are correct?

    Thanks in advance.

  83. Its because of this special dividend that they are releasing. Morningstar and Yahoo automatically pull in the most upcoming dividend to calculate yield. This is a one time special payout due to the merger. The normal payout of 53 cents will resume thereafter.

    Hope that helps.

  84. I like the play on OHI, I got in on them a little while back when they were priced right around $36.50.

    Curious what your thoughts on UNP are right now? I know you had them on your watch list, as do I. Seems like they are experiencing an over-correction right now. I love their long-term outlook though.

  85. Following up on your grocery store analogy, I think Mr. Market finally put UNP on the bargain shelf today!

  86. Ryan,

    Thanks so much. Glad you enjoyed the analysis. And I’m happy to be a fellow shareholder with you. OHI has a great story with tremendous long-term tailwinds at its back. Just a lot to like here. What’s amazing is how much they’ve already grown, yet how much growth they also very likely still have ahead. Good stuff!

    Appreciate the support. I’m hoping I can keep this pace up for a while, but 30 or so articles per month is pretty heavy. I’m fortunate in that I really enjoy it. 🙂

    Hope all is well!

    Best wishes.

  87. Adam,

    I wish you luck there. I may end up being the buyer at $40 if OHI improves enough to warrant it. We’ll see, but I might be buying what you’re selling. 🙂

    Cheers.

  88. DS,

    Yeah, I hear you there on MCD. I’m not totally confident they have the answers on turning it around. But I think they still have a great business model and there’s just a ton of potential there. If they really take the time to focus on food quality, customer service, and perception, they could do well. And it seems that they’re taking those issues to heart. We’ll see how it goes. I’m not real excited about MCD’s prospects here, but I’m not so pessimistic that I’d want to sell, either.

    Cheers!

  89. Paul,

    A few other investors above you asked the same questions. I don’t mean this to come across the wrong way, but it would probably be helpful to read the article and the comments. I not only answered your questions in the article, but also multiple times here in the comment thread. In addition, I’ve stated many times that quick checks at financial reporting sites is no substitute for actually getting the numbers yourself.

    I’ll quote the article:

    “Now, earnings per share isn’t an accurate or meaningful way to determine profitability for a REIT because depreciation is usually a large non-cash charge for REITs, but real estate generally doesn’t depreciate over long periods of time. It instead usually appreciates. As such, it’s better to look at funds from operations when analyzing a REITs profitability, since FFO adds back in depreciation and amortization to earnings. You can read more about that here.”

    And:

    “I will quickly note here that OHI recently declared a prorated dividend due to the timing of the AVIV acquisition and the issuance of equity. All in all, the announcement still added up to a 1.9% increase over the payout in the previous quarter – the prorated dividend added up to $0.54, an increase of $0.01 over the prior quarter’s payout of $0.53. However, that $0.54 was paid out in two payments of $0.18 and $0.36 per share. That increase, by the way, is the 11th consecutive quarter in which OHI increased its dividend.

    This prorated dividend seems to have confused some investors who assumed the dividend was cut, which is a good example as to why it’s important to double check with a company’s press releases whenever confusion arises.”

    You can find hyperlinks in the article, which link out to areas of further information. You’ll find the correct information at OHI’s investor relations site.

    Hope that helps!

    Best regards.

  90. Mike,

    “The normal payout of 53 cents will resume thereafter.”

    Right. It’s actually $0.54 per quarter. And it wasn’t a special dividend, but rather a prorated payout due to the issuance of equity and the timing of the acquisition. It makes a lot of sense when you read the press release and think about how equity is issued and how the acquisition is coming together.

    Thanks for helping out! 🙂

    Best wishes.

  91. MM,

    I like UNP a lot. One of the best run railroads around. I initiated a position not all that long ago, and I’ll be putting together a post on that pretty soon. If it drops to $100 or so, I’d probably add to my position there. Railroad stocks can be pretty sensitive to economic data and what not, but I also look at the long-term picture. And I can’t see them being any less vital to moving goods in 30 years than they are today.

    Best regards.

  92. Jim,

    Yeah, definitely. It’s down more than 14% YTD now. I just recently initiated a position in the company. The fundamentals are some of the best in the industry. If Mr. Market continues his pessimism, I might add to my position there. I’d like to see it drop 5% from my entry point, though. But a great company. I think CNI would be the other railroad I’d like to eventually own as well and probably be done there.

    Thanks for stopping by!

    Best wishes.

  93. I have owned OHI for about a year, and have been extremely happy with the investment. You did a great analysis of the stock and made an excellent decision to buy it.

  94. Fred,

    Happy to be a fellow shareholder. I’ve also owned it for about a year (I initiated my position early last year) and I’ve been very happy thus far. 🙂

    I think we’ll do well here. Looking forward to seeing where this one ends up in about 10 years.

    Cheers!

  95. Hi,
    I’ve been looking at your site off and on for a few months. I’m an avid dividend investor myself, and I am also self employed. I see a few things I have questions on if you don’t mind. 1) I don’t see effects of taxes on your income my self employment taxes are VERY high… 2) How do you buy your shares ? Your May shows a purchase of just 15 shares even an online purchase ( $7.00 per trade ) adds a lot to your cost basis.

    Thanks
    Bob

  96. Bob,

    No problem. Happy to answer the questions.

    1. I pay quarterly estimated taxes. I take that off the gross and report net income only. So the taxes are factored in by taking that quarterly estimated tax payment divided by 3 (to come up with a monthly figure).

    2. I didn’t pay any commission on this trade. I noted in the article that I had some free trades with my brokerage waiting to be used, so this ended up costing me nothing as far as commission fees. I’ll go ahead and quote myself:

    “This was a rather small transaction for me. I already had transferred capital over to my new TradeKing account prior to this purchase, and that capital was earmarked for another stock. So this was basically just a situation where I saw the opportunity and quickly transferred over capital to my Scottrade account where I had some free trades there waiting to be used.”

    Hope that helps!

    Take care.

  97. The uncertainty of rates are really giving some attractive values. Going to add to my OHI position as well, have quite a few shares from a couple of previous pullbacks in the $22 and $29 range.

  98. MMM,

    Nice moves there. I’m certainly hoping we see OHI (and other REITs) even cheaper over the near term, which is certainly possible with any changes or rumors regarding rates.

    Cheers!

  99. DD,

    Nice move! Glad to have you as a fellow shareholder. I think we’re in great shape here looking out over the long haul. Hoping to add a bit to my position once more over the near term as well. 🙂

    Have a great weekend!

    Cheers.

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