Thursday, April 30, 2015

Another REIT Purchase: WPC


Today I started in a new position in W P Carey Inc.

  • WPC: 20 shares @ $63.48 --- Yield  6.00%

Total capital invested is $1,276.55 and will add $76.20 to my yearly dividends.

This is the second REIT I have purchased in two days. I bought HCP yesterday which apparently was a tad bit early. HCP after dropping quite a bit over the last month dropped again today with many interest rate sensitive stocks. Unlike yesterday, I was able to buy around the lows of the day.

Last year I invested about $1800 in ARCP and ultimately dumped the shares at the beginning of this year. Actually I really don't have much of a REIT exposure. I picked up shares of HCP and DLR in the summer/fall of 2013 and largely avoided adding REIT shares until yesterday. I decided to just stick my toe in the water with today's purchase as there appears to be sharks swimming in the water.

The good news is after taking an ass whipping in my energy holdings over the last several months, they have been rebounding recently and providing a nice lift to my portfolio. ESV actually touched $27 today and I almost had a heart attack!

So what do I go and do?? Jump into the REIT sector. It was very scary during the back half of 2013 and appears to be volatile once again. PERFECT!!!

I guess at the end of the day I can only invest in so many "bread and butter" stocks.

Let the fun begin!

DEFY MEDIOCRITY

8 comments:

  1. MDP,

    Good to see I have company in the REIT ocean with the sharks circling. After buying O @ $47.94 yesterday, I added more today @ $46.75 and HCP @ $40.63. Add me to the list of those that are gluttons for punishment. Time will tell how early we are. Best of luck to you over there as you will hit $17,500 by the end of May at this rate.

    All the best.

    FD

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    1. FD,

      Awesome buys there! Oh we are probably a bit early, but that is ok. No one ever buys the exact bottoms or sell the exact tops. It is about spotting good ideas and putting capital to work. I don't worry too much about a few dollars here and there.

      MDP

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  2. I was early on my OHI purchase a little while back after they had fallen. I'm looking to buy more though if the punishment continues. WPC is definitely on my list as well. I think if it hits $60, I'll pull the trigger. Anything below $35 for OHI and I'll be averaging down on it so that would be a good thing.

    You keep trucking along! Just wish I had your kind of capital. Congrats.

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    Replies
    1. ADD,

      Don't worry about your current capital situation. There have been many times throughout my life when I have no capital. Just keep focused on building your career and your portfolio. Life circumstances can change with little warning. Keep moving forward and you will have a ton of success over time.

      MDP

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  3. MDP,
    very nice purchase! 6 % dividend yield for this quality REIT sounds very good. I really like their international diversification and moderate payout ratio. Maybe I'll follow you once again ;)

    ReplyDelete
    Replies
    1. DivRider,

      I like the yield as well. Really I probably should have waited a little longer to add to HCP. When looking at REITs 6% really should be the minimum yield I start with. Oh well I think this should be a nice addition to DLR and HCP.

      MDP

      Delete
  4. Nice buy! I bought OHI last week before the pounding REITs took this week. If the punishment continues, I'll buy more shares of OHI or look carefully at WPC as a candidate. Thanks for sharing.

    FerdiS

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    Replies
    1. Ferdi,

      REITs can experience the same volatility that oil companies faced in recent months. With the 10 year yield starting to spike there may be better prices going forward. I will be watching this sector closely and adding on further weakness.

      MDP

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