Yesterday I bought shares of HCP, Inc. (HCP), a real estate investment trust (REIT) that has a diversified portfolio of healthcare properties. I provided some quantitative data on HCP in a comparison of healthcare REITs that I posted earlier this week. Instead of posting a brief analysis of the stock here, I decided to try something different and wrote an article about HCP for Seeking Alpha that was published today.
I bought 35 shares of HCP at the price of $41.80 per share plus commission, giving me a 5.00% yield on cost. (I set my limit price specifically to get that yield on cost.) At the current dividend rate, I can expect to receive quarterly dividends of $18.38 from this purchase, which will add a total of $73.52 to my annual dividend income. My forward 12-month dividend total increases to $2,587. The stock went ex-dividend at the start of August, so I will not receive my first dividend payment until November. This purchase was made in my Roth IRA, which is a particularly good place for holding a REIT because the dividends would be taxed as ordinary income in my taxable account. I funded the purchase by contributing $1,400 to my Roth IRA, much of which came from the moving expense reimbursement I received earlier this week.
I am glad that my portfolio finally has some exposure to real estate. I will be continuing to explore this sector, with the goal of eventually owning a diversified group of 3-5 REITs that specialize in different categories. I have not yet decided what I will buy next for my portfolio, but funds have become available for another purchase. Yesterday I received my moving-related salary supplement, about half of which will soon become new capital for investment. Depending on what opportunities I see, I might make two purchases this month!
Personal update: The delayed paperwork needed to officially start my new job (see my July review) has finally been approved and should be delivered next week, which is great news.