Recent Buy – LTC Properties (LTC)
Finally I can post my first buy in August! I have been slacking lately on my buys but capital has been tight and used for other things. Can’t believe it has over a month since my last buy back at the end of June where I bought more shares of GIS. I am pleased to announce my August buy of LTC Properties Inc (LTC). This is a new position in my portfolio. I purchased 17 shares at a cost basis of $46.97. You can find more info on LTC below.
Annual Dividend: $2.28
Years Paying/ Increasing: 5 years
Dividend increase from prior year: 5.3%
Payout Ratio: 73.3%
P/E Ratio: 21.1
LTC is a healthcare REIT. If you want to know more about them, you can see the full summary here at Google Finance. There are a few reasons why I like LTC. First, the yield is over 4%, which seems pretty typical for REITs. It is not unlikely for REITs to have very high payout ratios. LTC actually has theirs fairly low which will help them maintain and increase their dividend. Lastly, they pay their dividends monthly! Monthly dividends will compound much faster than quarterly dividend earners. The only other monthly dividend payer I own is Reality Income (O). This purchase comes a few days prior to the ex-dividend date, so I will be able to collect the dividends immediately this month. Lucky for me, they pay on the last day of the month. I am looking forward to seeing this stock compound.
As shown above, LTC has a dividend yield of 4.78% or $2.28 annually. This will add another $38.76 to my yearly dividend income. Broken down monthly, it will add $3.23 per month. This new buy also finally puts my portfolio’s forward dividends over the $900 mark!
What do you think of this buy? Do you like LTC or do you currently own any? What other companies are on your watch list right now? Any REIT you would prefer over this? Comments welcome below.