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Strategies & Market Trends : Dividend investing for retirement

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To: Steve Felix who wrote (19844)	6/3/2014 4:46:10 PM
From: E_K_S	Read Replies (1) of 34328

So your strategy is to buy some VTR which probably is smart as you are hedge w/ the HCT that converts. Eventually you can sell the high priced shares when all the new shares have been received (and/or use your high priced shares as a source of funds). I like MPW but HCT was cheaper and VTR may even be the better bargain. DOC is good but pretty small and one blow up in any of their properties could really hit the company. I scanned most of the HCT property holdings and was really surprised at their large CAP rates between 7.5-8.5 and even a few above 9. That is what convinced me to buy a lot of their shares. In fact been peeling off my shopping mall REITs and moving the money into these medical reits. I think that their growth rates 5 years out will be much better than all of the shopping malls. As far as EPB, this is a 2016 and beyond play. Growth will kick in 2016 and I expect the price will move higher in 2015 as the market will pay up for that growth. SXE is a recent MLP midstream I have bought and one more flat quarter (per conference call), revenues should begin to benefit from their completed construction projects. Most if not all MLPs should be in the taxable account, that is why I have focused new money in IRA to these medical reits. I will put VTR on my buy list and try to match shares in the other accounts as money becomes available and/or I can sell equivalent in IRA and/or ROTH. I would like to make these medical REITs a core holding (perhaps as a basket of three companies: DOC, MPW and now VTR). I think I still have some of that Senior Housing REIT and/or their preferreds. That might be a good one to switch into VTR. My premise w/ these medical REITs is that so much of our GDP is going into health care, I thought the portfolio should reflect that. I do not want to support the "for-profit" insurance companies, so this is the next best way to make a "pure" play w/ income. Also, there is little to no foreign market and/or political risk but I do expect minor tweaks to Obama Care (ie make use of off site urgent care facilities rather than hospital emergency rooms) so more efficient use of monies go to new and emerging services and/or facilities. That is why DOC is so attractive. They are small and can move quickly into these emerging medical service "specialized" facilities. FWIW, did the same type of thing w/ GOV during the debt crisis where Federal, State and local "owned" facilities were being "leased-backed and/or sold" in favor of long term leases. It's nice to have a tenant that can tax the public to make their rent. It's now trading at/near highs and still yielding 6.7%. If the yield falls below 6.5%, I may peel off some shares in favor of medical reits that yield 7.5% or more. I am focused on U.S. based regional companies as most foreign markets (maybe exclude Canada) are still having debt and/or sustained economic growth problems. I am a firm believer that U.S. rates and world rates will stay at/near 0% for a very long time (maybe up to 10 years before they normalize). Therefore, any of these high yielders in a moderate growth sector (like medical care) will have outstanding "real" returns. I also like the flexibility to reinvest these distributions over time into new ideas and/or other high payers. EKS

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