As the market shifts I sometimes find myself favoring a particular stock more then another. I'm sure many investors go through this type of ordeal and I typically like to double down or take advantage of a great opportunity when I see one. It has been a hard start to the month in terms of investment wise because I haven't had the extra capital I'd like to invest early into the month.
Last month was a three pay check month. Because of this, and also having to pay my property taxes I was left without any powder till next payday. I missed out on a great opportunity which was GIS. I've had my eyes on them ever since the recent pullback and I really want to get in because the ex dividend date. I understand I could have chosen to jump in even after the ex date but something about making it in time for dividends really feels great.
Today will most likely be the only purchase I will be making this month so I had to make a big one. I decided to strengthen my current position in OHI by adding an additional 35 shares worth of $1,105 thus adding an additional $91 towards my annual dividend income. This further boosts my forward looking income to $1,942.15.
I had a few major motives that drove me to add more capital into this position. First off this company just announced their 21st consecutive quarterly dividend increase. This was an increase of .01 which ended being a 2.1% increase. This s very impressive to me because the company already pays over 8% and they are containing to increase quarter after quarter. This is a very strong sign proving confidence by the board and I'll be sitting here collecting these fat dividends while I sit around.
Secondly, The stock has been churning lately and has been very stable with very little volatility month to month. This is awesome to me because I'm still earning an annual percentage of 8% and also reinvesting all my dividends while the stock is at a safe and stable place.
Third, the payout ratio is still hovering around the 70% mark while offering an amazing yield with a streak of increasing annual dividend payments for 7 years now. I have no doubt that this company is going to continue to provide shareholder returns and focus on making it to the dividend contender mark.
I made my first investment into this company expecting it to be a smaller one but it would honestly be silly of me to pass up such a great opportunity. I have seen investors that have a much larger stake in this company which also reassures me in my small little holding I currently have.
The way I'm currently looking at this company also is that the stock price could remain the same as long as they keep pumping out a dividend to the return of 8.2% then I'd be happy to just sit at these levels, build up my reinvested dividends and enjoy the awesome returns.
So how does everyone feel about my latest addition? Should I still have purchased into GIS despite missing the ex dividend date?