After closing my Pfizer (PFE) position and anticipating some tax-harvesting sells, I wanted to boost DivGro's projected annual dividend income (PADI) a bit. So, in addition to adding shares to my existing CVS position, I also added shares to high-yielding Omega Healthcare Investors (OHI). It probably is a risky move, as OHI is now yielding nearly 10% and concerns about the impact of problems with one of its tenants linger. The REIT reported worse-than-expected third quarter earnings at the end of October which resulted in a steep drop in the share price.
CVS Health (CVS) – Added 50 shares of CVS @ $70.62 per share
CVS provides integrated pharmacy health care services. The company advises patients on medications at CVS Pharmacy locations; provides cost control programs through CVS Caremark; delivers care to patients through CVS Specialty; and provides pharmacy care for seniors through Omnicare. CVS was founded in 1892 and is headquartered in Woonsocket, Rhode Island.
I already own 50 shares of CVS, so this buy doubles my CVS position to 100 shares.
Please see this article for a recent analysis of CVS.
Omega Healthcare Investors (OHI) – Added 100 shares of OHI @ $27.07 per share
Founded in 1992 and based in Hunt Valley, Maryland, OHI is a self-administered that invests in income-producing healthcare facilities in the United States and the United Kingdom. The company provides long-term leases or mortgage financing to healthcare operating facilities. OHI secures funding through loans, revolving credit, equity securities, and secured indebtedness.
I added 100 shares to increase my holding to 500 shares. OHI's average cost basis is $34.23 per share, while the average yield on cost is 7.59%. This buy adds $260 to DivGro's PADI.
Please read this article for a recent analysis of OHI.
Conclusion
Recently I added shares to two existing DivGro positions, CVS and OHI. The former is the top-ranked stock in DivGro and trades at a significant discount to my fair value estimate. The latter is a high-yielding REIT with lingering concerns about one of its tenants. While a little riskier, I believe my investment in OHI eventually will pay off. We'll see how it goes!
Thanks for reading!
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