For my first purchase today I bought shares of HCP, Inc. (HCP), a large and diversified healthcare REIT. I provided some information about HCP in an article on Seeking Alpha when I started my position in August. The continued decline in the stock price (HCP now has a P/FFO below 13) motivated me to average down by increasing my position.
I bought 40 shares of HCP at the price of $37.68 per share plus commission, giving me a 5.55% yield on cost and reducing my cost basis by over 2% to below $40 per share. At the current dividend rate, I can expect to receive quarterly dividends of $21.00 from this purchase, which will add a total of $84.00 to my annual dividend income. This purchase was made in my Roth IRA using rollover money. I now have a total of 115 shares of HCP and I will receive combined quarterly dividends of $60.38. My forward 12-month dividend total increases to $3,366.