Wednesday, January 21, 2015

Two More Dividend Raises!

     With US earnings season in full swing, two more companies in my portfolio announced dividend increases in the last week.
     Omega Healthcare Investors, Inc. ("OHI") increased their quarterly dividend by a penny a share to $0.53; their tenth consecutive quarter with a dividend increase! Omega provides financing to the long-term care industry. In October 2014, Omega merged with Aviv Healthcare Properties, creating a $10B pure-play skilled nursing facility REIT. I was lucky enough to buy shares in Omega at $37 last fall, and have watched with mixed feelings (should have bought more!!!) as they've since climbed to over $44. I'm looking forward to seeing the quarterly figures as a merged entity in early February.
     Realty Income ("O"), which bills itself as "The Monthly Dividend Company" is clearly my kind of investment. Since being listed on the NYSE in 1994, the company has paid 535 consecutive monthly dividends, and increased the dividend 79 times. After only raising their dividend by about 1% in 2014, Realty Income got the year off to a strong start by boosting its monthly payout by 3%. The dividend is supported by the cash flow from the strong portfolio of over 4,200 properties in the US under long-term lease agreements. Their portfolio of properties has lead to higher rents, which translates into higher cash flows for the company, and higher distributions for shareholders. Although I think the company is a little pricey right now at over $52, I'd look to add to my position on dips in the future.
     The first three dividend increases of 2015 in my portfolio have added almost $50 of additional yearly projected income for me. Here's hoping this impressive trend continues.

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