Happy Fourth of July to all the readers out there. As we celebrate United States independence, it is time for us to reflect back on Dividends!
From November 2016 till now, my wife and I have experienced many ups and downs but through thick and thin, the dividends kept rolling in. So without further adieu, lets get down to some numbers...
October 2016 - 10 different stocks/funds totaling - $352.25
November 2016 - 3 different stocks/funds totaling - $348.00
December 2016 - 6 different stocks/funds totaling - $228.47
January 2017 - 4 different stocks/funds totaling - $224.51
February 2017 - 4 different stocks/funds totaling - $362.21
March 2017 - 5 different stocks/funds totaling - $104.37
April 2017 - 2 different stocks/funds totaling - $87.15
May 2017 - 4 different stocks/funds totaling - $372.78
June 2017 - 4 different stocks/funds totaling - $205.02
So you might notice that every three months, on "off" months Nov, Feb, May, Aug, we are receiving over $350 in dividends. This is a bit skewed because of OHI. This power house is generating $1,400 of our projected $2,200 in dividends this year.
I realize that most people try not to put much weight/capital in one stock but with roughly $15,000 out of $65,000, our weight in the stock is 23%. Not terrible. But, due to high yield, we are making 63% of our dividends from this stock. Lets hope Trump leaves healthcare alone for a while and worries about bigger and better things like a wall... I kid, I kid. Ugh.
Either way, I am comfortable knowing that OHI is a well run business and I am a long term share holder in this company. Outlook seems positive with baby boomers growing older and the payout ratio is quite low for a REIT.
After paying off the mortgage, I wanted to keep a stock that still rolls in the cash and OHI fit that bill. I sold O due to the rally it experienced and kept OHI instead. Hopefully that move pays off because I am dripping the dividends back into OHI at these low prices. $1,400 a year at $35 is an extra 40 shares per year! Currently, we are picking up an extra $10+ per quarter due to dripping. That is intense!
I have also moved away from some other dividend paying stocks and into healthcare stocks. I currently own VHT, CELG, BIIB and VRX after proceeds from a VMGRX and PM sale. I know, I know PM is a long term wealth building machine but due to same reason as above... Trump and healthcare... these stocks have been beat down/kept in check for months now. I want to capitalize on any loosening of the chains and less government intervention to propel these stocks higher.
This might be timing the market but I like to think of it as buying when stocks are on sale. To me, this sector seems on sale compared to the rest of the market.
My wife and I are both maxing out our 401K's into general market tracking funds so I wanted to be a little more proactive with the taxable account. At the current time, these are all multi year holds unless something pressing comes up.
Below is an update to the graph!
Thanks for stopping by and let me know what you think!